Remedy Entertainment Secures Full Control Franchise Rights, Expanding Creative Dominance

In an exciting development for fans of the hit game Control, Remedy Entertainment and 505 Games have announced a transaction that will see all publishing, distribution, marketing, and other rights to Control, codename Condor, Control 2, and all future Control products revert back to Remedy. This move puts Remedy in a prime position to make strategic decisions that will fuel the long-term growth of the franchise.

While the immediate impact on the income statement is minimal, Remedy sees great potential for growth in the mid-to-long term. With full ownership of the Control franchise, Remedy can now explore various options for self-publishing or partnering with a new publishing company for Condor and Control 2. This newfound control over marketing, distribution, and other business-to-business deals opens up opportunities for financing and partnerships that will further elevate the success of Control 2, Condor, and the entire Control franchise.

Remedy’s CEO, Tero Virtala, expressed his satisfaction with the partnership between Remedy and 505 Games, which resulted in the successful sales of over 4 million units of Control and generated approximately EUR 100 million in net revenue. Virtala emphasized Remedy’s long-term strategy of gaining more ownership over their business and intellectual properties. Reclaiming all rights for Control and the upcoming projects gives Remedy the freedom to chart their own course forward. Virtala assured fans that development on Condor and Control 2 will continue as planned while they carefully consider the best publishing, distribution, and financing models.

As this transaction unfolds, Virtala took a moment to thank the team at 505 Games for their partnership over the years and their contribution to establishing Control as a promising gaming franchise with immense potential.

The Financial Statements Bulletin 2023, originally scheduled for release earlier, will now be published on March 20, 2024, due to the negotiations surrounding this transaction.

Key terms of the agreement include the immediate termination of publishing agreements for Control, codename Condor, and Control 2 by mutual agreement. All publishing, distribution, marketing, and other rights for Control 2 and codename Condor revert back to Remedy, with 505 Games continuing as the publisher of Control until December 31, 2024, during a transition period outlined in the original publishing agreement. Additionally, 505 Games will administer existing business-to-business deals for Control until their agreed expiration dates. Once the transition period concludes and these deals expire, 505 Games will no longer hold any royalty or rights to Control.

The transaction’s maximum purchase price is approximately EUR 17 million, which covers the amount paid by 505 Games for the development of codename Condor and Control 2, including a minor premium. Remedy has the right to offset certain receivables from the purchase price, resulting in a cash flow effect that is lower than the purchase price. Remedy will make three cash instalments for the net purchase price over the next twelve months.

With a rich history of creating story-driven and visually stunning action games like Alan Wake and Max Payne, Remedy Entertainment continues to push boundaries in the gaming industry. Alongside their own Northlight game engine and tools technology, Remedy’s acquisition of full control over the Control franchise sets the stage for an exciting future of innovation and success.