Alan Wake, Control developer agrees €15m convertible loan from Tencent
To aid in "fully realising the potential" of projects now in the works.
Alan Wake and Control developer Remedy has entered into a €15m convertible loan agreement with technology conglomerate Tencent. This type of loan is an agreement that can be converted into a predetermined number of equity shares at a later date.
Tencent's loan is still to be approved by Remedy's Extraordinary General Meeting, which is scheduled to be held by 24th October. Following its approval, 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.
"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," Remedy CEO Tero Virtala said today, in a press release detailing the loan.
"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."
The studio exec said Tencent's investment in the company "demonstrates strong confidence in Remedy's long-term vision and strategy".
Earlier this year, Remedy cancelled a premium co-op multiplayer game it had in the pipeline with Tencent. This project started life as codename Vanguard, before it was rebooted last year, and was being developed by the studio, with Tencent set to handle the publishing side of things.
At the time of this announcement, Remedy said the cancellation would allow the studio to focus on other games in its portfolio. Upcoming games include the self-published Control 2, the Max Payne 1 & 2 remakes and a Control multiplayer spin-off which the company said will give players a "unique Remedy angle" on the genre.
In addition to the above, Remedy also recently entered a partnership which will see Annapurna Pictures financing half of Control 2 in exchange for the film and TV rights to Control and Alan Wake. Earlier this month, Thomas Puha from Remedy moved to assure his followers that the mass exodus of staff at indie video game publisher Annapurna Interactive would not affect the studio's partnership with Annapurna going forward.