NEW YORK and SEOUL, South Korea, Jan. 26, 2026 (GLOBE NEWSWIRE) -- K Wave Media (NASDAQ:KWM), a publicly traded media and entertainment company with a Bitcoin treasury, today announced the successful closing of its first acquisition since its Nasdaq listing in 2025. K Wave Media's acquisition of Rabbit Walk, a leading visual effects, AI powered advertising, and 3D content studio, strengthens K Wave Media's creative portfolio, broadens its global content distribution reach, and reinforces financial discipline through a tied share issuance structure.

Rabbit Walk generated $11.7 million in revenue in 2025, delivering a 22 percent compound annual growth rate from 2020 to 2025 and EBIT margins of 8 to 19 percent during the same period. K Wave Media projects that Rabbit Walk will contribute approximately $15 million in revenue and $1.5 million in EBITDA in 2026. K Wave Media's revenue in 2024 was $58 million. The completed transaction marks a significant milestone in K Wave Media's growth strategy and significantly expands its creative and production capabilities.

As a result of the acquisition of Rabbit Walk, K Wave Media expects its revenues to increase by 25 to 30 percent over the next 12 months. The acquisition of Rabbit Walk also adds advanced visual effects, AI powered advertising, and 3D content production capabilities, along with an expanded global client roster that includes a 14-year relationship with Samsung Electronics and additional clients such as LG Electronics, TCL, and Hisense.

Closed Transaction Details:

Control Acquisition: Upon closing, K Wave Media acquired a 55 percent ownership stake and managerial control in Rabbit Walk through the issuance of 2,633,753 K Wave Media ordinary shares at a price of $2.50 per share.

Performance Based Contingent Equity: Approximately an additional 3 million shares, at a price of $2.50 per share, may be issued to acquire the remaining 45 percent of Rabbit Walk if Rabbit Walk achieves operating profit exceeding ₩1.2 billion KRW (approximately $800,000 USD) in either 2025 or 2026. The final share count will be determined based on the prevailing KRW to U.S. dollar exchange rate at the time of issuance, if any. No additional shares will be issued if this profitability threshold is not met.

Founded in 2010, Rabbit Walk has built a strong reputation as a high end visual effects, AI powered advertising, and 3D content studio. Rabbit Walk has produced more than 1,400 commercials and brand films, including premium demo content for Samsung's ViewFinity S9 displays and advanced CGI and 8K live streaming productions.

Rabbit Walk serves a global client base of leading electronics and media brands, supported by long standing partnerships that underscore its creative excellence and technical depth.

"K Wave Media expects this transaction to be immediately accretive to our growth profile and to meaningfully strengthen our revenue base," said Ted Kim, CEO of K Wave Media. Mr. Kim continued: "With Rabbit Walk contributing a profitable, high growth business and a blue chip global client roster, we expect this acquisition to drive a 25 to 30 percent increase in K Wave Media's consolidated revenues over the next 12 months, while maintaining strong margins and disciplined capital allocation. Completing this acquisition marks the beginning of K Wave Media's strategic focus on strengthening its profitability and generating sustainable cash flow going forward as a publicly traded company."

About K Wave Media

K Wave Media (KWM) is a publicly listed entertainment and Bitcoin treasury company dedicated to creating, distributing, and monetizing high-quality content across multiple platforms. Since going public in 2025, KWM has focused on strategic growth initiatives, including acquisitions, digital platforms, and digital asset treasury management.

About Rabbit Walk

Rabbit Walk is a leading 3D visual content studio headquartered in Gangnam, South Korea. Specializing in high-resolution CGI, demo content, and brand storytelling, Rabbit Walk has delivered over 1,400 projects for leading global brands, establishing itself as a trusted creative partner in the Korean entertainment and media industry.

Forward Looking Statements:

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this communication and on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, market, financial, political and legal conditions.

If any of these risks materialize or the Company's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company does not presently know, or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company's current expectations, plans and forecasts of future events and views as of the date hereof. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein and the risk factors of the Company described in the Company's Form 20-F initially filed with the SEC on May 14, 2025, as amended, including those under "Risk Factors" therein. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Media Contact:

Investor Relations: info@kwavemedia.com

Evan Sneider: esneider@redroosterpr.com

K Wave Media Completes Acquisition of Rabbit Walk