Alan Wake and Control developer Remedy has entered into a €15 million ($16.7 million) convertible loan agreement with Tencent.
Remedy said the loan will carry an 8 percent annual non-cash interest rate and has a fixed conversion rate of €27.2 per share.
Studio CEO Tero Virtala said the move will strengthen Remedy’s position in the value chain and give the company more control over how its projects are commercialized.
“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,” he added in a press release. “Tencent’s investment demonstrates strong confidence in Remedy’s long-term vision and strategy.”
Tencent currently holds a 15 percent stake in Remedy and first invested in the company back in 2021.
Remedy’s business partners
The Chinese conglomerate isn’t Remedy’s only partner. Earlier this year, the company struck a deal with Annapurna Pictures (not to be confused with embattled publisher Annapurna Interactive) to secure financing for Control 2. In exchange, Annapurna nabbed the transmedia rights to both Control and Alan Wake.
Discussing that deal, Virtala again suggested it would enable Remedy to move into self-publishing while expanding its franchises into other mediums.
Remedy has multiple projects in development including Control 2 and a multiplayer Control spin-off codenamed Project Condor. The latter is currently in full production, while the former is at the “production readiness” stage.
The Finnish studio is also remaking the first two entries in the Max Payne franchise with Rockstar Games.