Tencent loans €15m to Remedy
Funding will support ongoing development and self-publishing efforts
Finnish developer Remedy has received a €15 million loan from Tencent.
The finance will be converted to a maximum of approximately 811,110 new shares, representing 5.98% of all Remedy shares, and a convertible loan agreement.
Remedy CEO Tero Vitala said the loan will support Remedy in development as it begins to self-publish its games.
The loan is subject to approval of the developer's Extraordinary General Meeting, which is expected to be held on October 24, 2024.
"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 commercialised, and to grow our share of the value these games can create," said Virtala.
"As we move towards self-publishing, this financing will support us in developing and fully realising 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."
In May 2021, Tencent acquired a 3.8% stake in Remedy, which increased to 14% in April 2024.
The developer entered a global agreement with the firm as a publishing partner for its multiplayer title codenamed Kestrel (previously Vanguard). This project was cancelled in May.
Remedy recently secured funding from Annapurna Pictures to finance 50% of Control 2, which is currently in development. Annapurna also secured the film and TV rights to Control and the Alan Wake series.
As stated in the developer's financial results for H1 2024, Alan Wake 2 has yet to fully recover its development costs. Released last October, the game has recouped most of its development and marketing expenses but has yet to generate royalties.