Remedy Entertainment, famously known for being the studio behind hits like Control and Alan Wake, has just secured a significant financial boost through a loan agreement with the ever-present Chinese video game giant, Tencent. This deal, valued at €15 million (approximately $16.76 million), was announced in a press release from Remedy today. The agreement is a strategic move that the CEO of Remedy, Tero Virtala, believes will propel the company forward in its game development and self-publishing endeavors.
Virtala emphasized that this financial partnership aligns with Remedy’s long-term strategy to enhance its position within the gaming industry. By gaining more control over the commercialization of their games, Remedy aims to increase its share of the value generated by its creations. The investment from Tencent is seen as a strong endorsement of Remedy’s long-term vision and strategic direction.
As Remedy transitions towards self-publishing, this financing will be instrumental in developing and fully realizing the potential of our current projects, as well as executing the commercial activities for our upcoming self-published titles.
Recent Remedy games were in partnership with publishers like 505 Games and Epic Games, and the studio now wants to rid itself of the whole third-party publishing process and handle it all by itself. This also hints at the confidence the team has in its upcoming games.
Currently, Remedy is working on several recognizable projects, including Control 2 and a spin-off titled Project Condor. Additionally, the studio is in full production on the highly anticipated remakes of Max Payne 1 & 2.
Remedy’s loan agreement with Tencent includes a convertible loan with an 8% annual non-cash interest rate. This allows the loan to be converted into shares at a rate of €27.2 ($30.40) per share, potentially resulting in the issuance of up to 811,100 new Remedy shares. This conversion would represent approximately 5.98% of the company’s total shares. Tencent already holds a 15% stake in Remedy, so if this does come to pass, Tencent will further solidify its partnership with Remedy.
