Alan Wake and Control developer Remedy has entered into a €15 million ($16.7 million) convertible loan agreement with Tencent.
Remedy said the loan will carry an 8 percent annual non-cash interest rate and has a fixed conversion rate of €27.2 per share.
Studio CEO Tero Virtala said the move will strengthen Remedy's position in the value chain and give the company more control over how its projects are commercialized.
"As we move towards self-publishing, this financing will support us in developing and fully realizing the potential of the games we have in development and successfully carrying out the commercial activities of our next self-published games," he added in a press release. "Tencent’s investment demonstrates strong confidence in Remedy's long-term vision and strategy."
Tencent currently holds a 15 percent stake in Remedy and first invested in the company back in 2021.
The Chinese conglomerate isn't Remedy's only partner. Earlier this year, the company struck a deal with Annapurna Pictures (not to be confused with embattled publisher Annapurna Interactive) to secure financing for Control 2. In exchange, Annapurna nabbed the transmedia rights to both Control and Alan Wake.
Discussing that deal, Virtala again suggested it would enable Remedy to move into self-publishing while expanding its franchises into other mediums.
Remedy has multiple projects in development including Control 2 and a multiplayer Control spin-off codenamed Project Condor. The latter is currently in full production, while the former is at the "production readiness" stage.
The Finnish studio is also remaking the first two entries in the Max Payne franchise with Rockstar Games.
captaindealbreaker on September 27th, 2024 at 17:17 UTC »
It is remarkable to me that this studio has done nothing but crank out cult classics, and they still have trouble getting repeat financing for their projects
You'd think after all these years someone with common sense would start writing checks for them...
MrMunday on September 27th, 2024 at 16:58 UTC »
Tencent actually partially owns a LOT of studios and it’s really difficult to find bad things that happen to them.
BG3 has the same thing. Wasn’t bad at all.
What’s the worse thing that happened from receiving money from tencent?
Tyolag on September 27th, 2024 at 15:15 UTC »
15 million loan agreement isn't bad ( obviously depends on the terms )
As for Tencent, from a gaming perspective they haven't done anything exactly negative...let's not forget they funded Baulders Gate 3, in fact they own a sizeable share in Larion and that didn't end up so bad did it.
Remedy is only getting a loan, nothing too controversial there..this to an extent is similar to Sony/Xbox/EA being the publisher..and if it's PlayStation you can bet the game will be more than likely exclusive.
Anyways I'm just saying this isn't as bad as it looks.