Remedy Entertainment is Planning an IPO; Looking to Grow Into a Multi-Project Model
Remedy Entertainment is planning an IPO for next month, as it looks to strengthen its position within the games industry.
Remedy Entertainment is a Finland-based developer founded in 1995. They are the team that have created strong IP, such as Max Payne, Alan Wake, Quantum Break, and who even developed the original Death Rally and its remake. They aren’t the biggest or most well known developer in the industry, but among hardcore gamers they are known quite well and carry a decently high exception of quality.
All that being said, it looks like Remedy Entertainment is making some moves to grow even bigger. Today, the developer revealed that it’s planning an IPO. For those that don’t know IPO (or stock market launch) is a type of public offering in which shares of a company usually sold to institutional investors in turn are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company.
According to Remedy Entertainment, it believes this move will help push it beyond its current level towards “a stronger value chain position” within the games industry.
The planned listing and IPO is scheduled to take place sometime next month, with a main goal to “execute Remedy’s growth strategy and cover the company’s development and commercialization expenses.”
CEO Tero Virtala added that Remedy is developing its business in line with its strategy towards a “multi-project model,” which will help it release “high-quality games” to the market with a higher frequency. The CEO adds: “Our goal is to be one of most renowned game companies in the world.”
Another reason Remedy wants to make this jump is in regard to ownership. For games like Quantum Break and Alan Wake, many years went into their development, yet the Finnish company’s negotiating position didn’t allow for it retain control of the IP.
Remedy founder and chairman of the board Markus Mäki added:
“Remedy is a game company that has mastered the gaming business, creative content production and cutting edge technology. A successful game requires experience and skill to build a sustainable brand, as well as comprehensive game development competence and the ability to commercialize games throughout their life cycles. You also need great business relations and solid funding to support all of this.”
For the year of 2016, Remedy saw a 20% rise in its revenue. As you may know it has two projects in the works at the moment. One is a a sequel to FPS CrossFire and the other is an unannounced project known as “P7.” Additionally, the developer is in the process of developing its Northlight game technology for the PS4, a step in a larger strategy to release its gamers on a wider variety of platforms.