Tencent has extended a €15 million loan to Remedy

Developer Remedy, based in Finland, has secured a loan amounting to €15 million from Tencent.

This funding is expected to be converted into about 811,110 new shares, which would account for around 5.98% of all shares of the company, and involves a convertible loan agreement.

The CEO of Remedy, Tero Vitala, highlighted that this loan would aid the company as it embarks on publishing its games independently.

Approval for this loan will be sought at the company's Extraordinary General Meeting, anticipated to occur on October 24, 2024.

Virtala mentioned, "Strengthening our role in the value chain and gaining control over the commercialization of our games, to increase the value they create, is a key component of Remedy's long-term strategy."

"This financing will be instrumental as we transition towards self-publishing, assisting us in fully developing our current game projects and handling the commercial endeavors of our future independently published titles. Tencent's investment reflects strong faith in Remedy’s strategy and long-term vision," added Virtala.

Previously, in May 2021, Tencent acquired a 3.8% interest in Remedy, which was subsequently increased to 14% in April 2024, as detailed here.

Remedy entered a worldwide agreement with Tencent to act as the publishing partner for its multiplayer project initially known as Kestrel. However, this project was called off in May.

Additionally, Remedy secured a deal with Annapurna Pictures to fund half of the development costs for Control 2, which is currently underway. Annapurna also obtained the rights for film and TV adaptations of the Control and Alan Wake series.

The financial report for the first half of 2024 revealed that Alan Wake 2 has yet to fully recover its development expenses. Launched last October, the game has managed to cover most of its production and marketing costs but hasn't yet generated royalty income.