Analyst Claims Control Deal Boosted Remedy’s Share Price Due to Attractive Purchase Price

Gaming company Remedy Entertainment has announced that it has purchased all rights to the Control game brand from 505 Games. This move places Remedy in a strong position for future negotiations with new publishing partners, according to Atte Riikola, an analyst at Inderes.

Before this acquisition, Remedy and 505 Games had been jointly developing the Control brand. Now, with full ownership, Remedy has the freedom to self-publish future Control games or to negotiate with a new publishing partner for better project financing terms.

The total cost of this deal is a maximum of 17 million euros. The rights acquired by Remedy include all current and future Control products, including the Control 2 games and the Control game codenamed Condor.

From Remedy’s perspective, the purchase price is seen as attractive. The company’s stock rose by about six percent shortly after the announcement. Remedy plans to pay the purchase price in cash over three installments in the next 12 months.

Following the acquisition, Remedy is reportedly looking for a new partner for the Control 2 and Condor projects. The company’s current cash situation might not be enough to self-publish both games, hence the need for a new partner to fund either or both projects.

Even though this transaction will not have an immediate impact on Remedy’s income statement, it presents attractive growth opportunities in the medium and long term. Riikola believes that Remedy’s share of the royalties for future Control games will be better than the previous publishing agreement with 505 Games, where costs and profits were shared equally.

As for Inderes, their forecasts for the coming years remain unchanged. They will re-evaluate the matter in the first quarter financial statements. Currently, Inderes estimates that the Condor game will be released towards the end of the first half of 2025, followed by the Control 2 game in the first half of 2027.