(Photo : Remedy Entertainment / Screenshot taken from Steam)
The developer of the Alan Wake and Control franchises, Remedy Entertainment, has partnered with Tencent for a $17 million loan.
The funding will be converted to a maximum of approximately 811,110 new shares. These represent about 5.98% of all Remedy shares and will also include a convertible loan agreement.
Remedy Takes Loan From Tencent
Remedy Entertainment CEO Tero Virtala said that the new loan will support the studio in development as it starts to self-publish its games. The funding is subject to the approval of the developer's Extraordinary General Meeting. This is expected to be held on Oct. 24, 2024.
Virtala added that part of Remedy Entertainment's long-term strategy is to strengthen its position in the value chain. It plans to have more control over how its games are commercialized and to grow its share of the value that these games can create, according to GamesIndustry.
He added that the new loan will support the studio in developing and fully realizing the potential of the games that are in progress. The Remedy Entertainment CEO said that Tencent's investment demonstrates strong confidence in the studio's long-term vision and strategy.
Read Also: Max Payne Remake Updates Come as Tencent Triples Its Investment in Remedy Entertainment
The development comes after Tencent acquired a 3.8% stake in Remedy Entertainment in May 2023. This particular stake increased to 14% in April this year. The Alan Wake and Control developer entered a global agreement with the firm as a publishing partner for its multiplayer title codenamed Kestrel.
If the Extraordinary General Meeting approves the new loan, Tencent will "have the right to convert the loan into new Remedy shares in accordance with the terms and conditions of the convertible rights," three years after the drawdown, Eurogamer said.
Various Projects in Progress
Remedy Entertainment canceled a premium co-op multiplayer game earlier this year. It was codenamed Vanguard and it was rebooted last year. Tencent was set to handle the game's publishing.
When the cancellation was announced, Remedy Entertainment said that it was to allow it to focus on other games in its portfolio. The studio's upcoming games include Control 2 and remakes of Max Payne 1 and 2.
Many fans see the logic in Remedy Entertainment's decision to go back to Tencent for more financial assistance. Most of the studio's games cost a lot of money and they don't become instant sales hits as well.
As of May 2024, the developer has still not yet made a profit on Alan Wake 2, and buying the title back will cost a hefty sum, according to PCGamer.
Related Article: Remedy Cancels Project Kestrel to Shift Focus to Established Franchises