Official Remedy enters into €15 million loan agreement with Tencent

[Megan]

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."
Source:

Remedy enters into €15 million loan agreement with Tencent

The Alan Wake developer said the cash will help realize the potential of its production slate.

www.gamedeveloper.com

 

[Keksis_theBetr4yed]

I thought these guys hadn’t even fully recovered their development costs for AW2 yet. And now they're taking out another loan? Brilliant move.

 

[Forthcoming]

I thought these guys hadn’t even fully recovered their development costs for AW2 yet. And now they're taking out another loan? Brilliant move.

Well they're taking out a loan specifically to cover operating costs for their upcoming projects because they didn't generate any revenue from AW2.

 

[Visibly Shaken 2 Core]

This is pretty common in the business and investment world. Remedy wants to self-publish, so why would they go to Epic Games instead of one of their own investors?