Inside Information: Remedy acquires full rights to the Control franchise from 505 Games
Today,
The Control franchise is in the core of Remedy. Having acquired the full rights to Control, Condor and Control 2, Remedy is now in a position to make the right product and business decisions focusing on long-term franchise growth.
The key terms of the transaction are as follows:
- Termination of Agreements: Publishing agreements for Control, codename Condor, and Control 2 are immediately terminated by mutual agreement.
- Reversion of Rights: For Control 2 and codename Condor, all publishing, distribution, marketing, and other rights licensed to
505 Games revert to Remedy with immediate effect.505 Games will continue as the publisher of Control through a transition period endingDecember 31, 2024 , under the terms of the original Control publishing agreement. In addition,505 Games continues to administrate existing B2B deals for Control until their agreed expiration dates. After the transition period and the expiry of these B2B deals,505 Games will have no future royalty or other rights to Control.
- Purchase Price and Cash Flow Effect: The maximum purchase price for the transaction is approximately
EUR 17 million , which equals the amount that505 Games has paid for the development of codename Condor and Control 2 to date including a minor premium. Remedy is entitled to set off certain receivables from the purchase price and, therefore, the cash flow effect from the transaction will be clearly less than the purchase price. Remedy will pay the net purchase price in three cash instalments during the next twelve months.
The transaction has no immediate effect on the income statement, while we see attractive growth opportunities arising in the mid-to-long term.
This transaction will enable us to negotiate better deals for current and future Control games. We can now weigh up the options between self-publishing and a new publishing partner for Condor and Control 2. At the same time, we are in a better negotiating position than before as Control is an established brand and
Through this transaction we will also get to be more directly in charge of marketing, distribution and other business-to-business deals. This enables further financing and partnership opportunities which will help us to grow the Control 2 and Condor, as well as the whole Control franchise into an even greater success than before.
Remedy's CEO
Tero Virtala continues, "As we amicably part ways, I would like to take this opportunity to thank the
Remedy rescheduled the Financial Statements Bulletin 2023 due to the negotiations related to this transaction. As announced on
More information
Tero Virtala, CEO
Phone: +358 9 435 5040
Email: tero.virtala@remedygames.com
Veli-Pekka Puolakanaho, Head of Corporate Development and IR
Phone: +358 50 430 0936
Email: veli-pekka.puolakanaho@remedygames.com
Email: thomas.puha@remedygames.com
Remedy in brief
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