Finnish game studio Remedy has entered into an agreement with the Chinese conglomerate Tencent to raise 15 million euros. This money can be converted into Remedy shares 3 years after the deal is concluded and subject to “certain conditions”. This was reported by PC Gamer.
The transaction is still subject to the approval of Remedy’s shareholders and will be put to the vote at an extraordinary general meeting on October 24, 2024.
“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,” writes Remedy CEO Tero Virtala. “Tencent’s investment demonstrates strong confidence in Remedy’s long-term vision and strategy.”
If the loan is approved, it can be converted into 811,100 Remedy shares, representing about 5.98% of Remedy’s total shares. Tencent already has a stake in the Finnish developer. Back in 2021, it acquired a 3.8% stake in Remedy, which it increased to 14% in early 2024.
Remedy was also developing a free-to-play co-op game with Tencent, originally codenamed Vanguard. In 2023, Remedy relaunched the project under the new name Kestrel, but in May of this year, it was canceled so that Remedy could “focus more on other games in its portfolio.”
It is only logical that Remedy is returning to Tencent for additional financial support. The studio’s games are not cheap, and they do not sell in quantities that allow Remedy to quickly recoup its costs.
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