LogIn"This financing will support us in developing and fully realizing the potential of the games."
Remedy Entertainment, the Finnish developer behind Alan Wake and Control, has entered into a EUR 15 million convertible loan agreement with Chinese tech giant Tencent.
The loan is subject to approval by the board during the Extraordinary General Meeting to be held on October 24 and then paid to Remedy according to the Convertible Loan Agreement between the two parties. Tero Virtala, Remedy’s CEO, has declared how the funding would help the company realize its long-term goal in the Press Release. He said:
“Part of Remedy’s long-term strategy has been to strengthen our position in the value chain, to have more control over how our games are commercialized, and to grow our share of the value these games can create. 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. Tencent’s investment demonstrates strong confidence in Remedy’s long-term vision and strategy.”
Tero Virtala
The loan is unsecured and "is convertible into new Remedy shares under certain circumstances." It can be converted to a maximum of 811,100 shares, which is estimated to represent 5.98% of all Remedy shares. In April this year, Tencent increased its stake in Remedy to 14% after the studio's 2023 financial result showed a 22.2% drop.
In May, a free-to-play multiplayer project codenamed Kestrel, formerly codenamed Vanguard, which Remedy had teamed up with Tencent as its publishing partner, was canceled after its development was rebooted in November 2023.
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