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 have a non-cash annual interest rate of 8% and a fixed conversion rate of 27.2 euros 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 marketed.
“As we move towards self-publishing, this funding will help us develop and realize the full potential of the games we have in development and successfully advance the commercial activities of our upcoming 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% stake in Remedy and first invested in the company in 2021.
The Chinese conglomerate is not Remedy's only partner. Earlier this year, the company has struck a deal with Annapurna Pictures (not to be confused with struggling publisher Annapurna Interactive) to secure the financing Check 2. In exchange, Annapurna obtained the transmedia rights to both Control and Alan Wake.
When discussing that deal, Virtala again suggested that it would allow Remedy to move into self-publishing while expanding its franchises into other mediums.
Remedy has several projects in development, including Check 2 and a multiplayer spin-off of Control codenamed Project Condor. The latter is currently in full production, while the former is in the “production readiness” phase.
The Finnish studio is also remaking the first two chapters of the Max Payne series with Rockstar Games.