SCi raises $119M in share sale

Warner Bros. increases stake in ailing publisher to 20 percent, enters NA distribution agreement following substantial placing and open offer.

SCi's financial drama has, for a time at least, come to a close. After saying in February that the company needed to immediately obtain between £45 million (about $89 million) and £55 million (about $109 million) in working capital, the UK-based publisher and parent company of Eidos Interactive announced today it will raise some £60 million (about $119 million) in capital by issuing 171.6 million new shares, 45 percent of which will be for open purchase at a 37.5 percent discount of the stock's current going rate and the remaining 55 percent being limited to existing shareholders Time Warner and Thorson Prime Broker.

"The purpose of the Placing and Open Offer is to raise funds to provide SCi with the working capital necessary to fund the business and activities of the Company through the near-term and with additional funds for general corporate purposes over the medium to long-term," SCi said in a statement. "The net proceeds of the Placing and Open Offer will provide the Company with sufficient funds to develop and launch new editions of SCi's key titles, and to repay amounts outstanding under SCi's overdraft."

Both Time Warner and Thorson will be increasing their stake in SCi by some 45 million shares. According to Reuters, Thorson will raise its existing hold in the company from 15.4 percent to 22 percent, while Time Warner will now hold a 20 percent share of SCi following the placement, up from 10.2 percent. SCi notes that pending shareholder approval and assuming Time Warner and Thorson take full advantage of the offer, each will have contributed £15 million (about $23.4 million) to the £60 million total ($119 million).

In addition to gobbling up a larger stake in the company, Time Warner will enter into a North American distribution agreement with SCi under its Warner Bros. Home Entertainment label. As part of the deal, Warner Bros. will distribute SCi and Eidos boxed products in North America, as well as provide other creative, publicity, marketing, and sales services.

"I want more distribution muscle in North America," SCi CEO Phil Rogers told Reuters. "Boxed products. Retail relationships. It's a distribution drive, to grow top-line revenues. We won't give targets, it's too granular, but the US should be 50 percent of my revenues and it's not now."

As part of today's announcement, SCi reaffirmed that it was targeting a late-2008 release for Tomb Raider: Underworld. The publisher also provided a brief update on several other products in its pipeline, saying Eidos Montreal had begun work on Deus Ex 3, and that IO Interactive is "already working on a brand-new franchise along with the fifth Hitman game and a sequel to Kane & Lynch." SCi also noted that Eidos Hungary's Battlestations: Pacific is now slated to arrive in its next fiscal year, which begins July 1.

Warner Bros. investment in SCi is the company's latest move to increase its stake in the gaming business. Following a $500 million cash infusion by an Abu Dhabi-based financial group last year, the publisher purchased Lego Star Wars studio Traveller's Tales for a reported £100 million (about $156 million). The publisher was named as one of the many suitors reportedly in talks to buy out SCi since the publisher said that it had entered into preliminary acquisition discussions in September.

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25 comments
123outlaw
123outlaw

this game is going to be awesome

ParaBellum71
ParaBellum71

(Spoiler alert??) @sharp replay the last mission and press buttons

MatrixtheNEO
MatrixtheNEO

wow i cant wait for this game i love it so much i hope there will be multiplayer i will buy this game for sure 100% if it comes out

lucebuce
lucebuce

@ sharp9153 : 47 didnt die , yet im not gonna ruin anything else ;) just end the game and ul know what really wwent down , just hope that hitman 5 will be better and thief will be reanimated

sharp9153
sharp9153

[This message was deleted at the request of a moderator or administrator]

Chicito
Chicito

Tomb Raiders Better than all those Games no doubt about that.

Warghost2k
Warghost2k

Does this mean we may get another Carmageddon? :-D

Hedfix
Hedfix

Thief. Don't forget Thief.

DivineChampion
DivineChampion

DEUS EX 3 YES!!!!! Im like the biggest black hearted deus ex fanatic zealot EVAR!!! I R SO HAPPIES!!!!

jackrocks123
jackrocks123

hmmm when i brought my ps3 i thought i was gonna miss out on deus x cause it was xbox exclusive wasn;t it? ooo can't wait yayyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy i probably get thumbs down oh well

rob_dAmAgE
rob_dAmAgE

kane & lynch!!!! = greatest game i've played in a looooong time. but, i'm not here to argue games- a new hitman would be awesome also!!!!

Yokuz1166
Yokuz1166

Deus Ex 3 OMG! I cannot wait! And why would you make a sequel to Kane & Lynch. That game sucked.

belwyrm
belwyrm

Hitman V...cool, deus Ex 3 .... sweet, Kane and Lynch 2....could be cool, New Series....always a good thing, but I could deal without another Tomb Raider Game, honestly

gnrGrievous
gnrGrievous

A Brand New Franchise By IO Interactive ? ... They Are Also Doing HITMAN V ? ... AND A SEQUEL TO KANE & LYNCH ?!? ... (Actually ... we already knew about those things ... But lets pretend we didn't knew ... so that we can get back enough exitement to survive six more months ... ) *takes deep breath* ... YYYYYYYYYYEEEEEEEEEAAAAAAAAAAAHHHHHHHH !!!! ...

lowerpass
lowerpass

Its all about Hitman 5 baby. But deus ex 3 and underworld is good too.

spartan_lord
spartan_lord

awsum i forgot what exactly SCi stands for but meh,deus ex will be win

Pete5506
Pete5506

O'ya Dues Ex 3 is what I want

EPaul
EPaul

All i read was "blah,blah,blah, Deus Ex 3,blah,blah

beprice3
beprice3

Dues Ex 3 baby.THATS what its all about.

mykel77
mykel77

its all about tomb raider baby! thats all i care about

thenewau25
thenewau25

the first was one of the best games created seriously now 2 well if you can pick lock and hack with the same item and all guns have the same bullets.. so PLZ dont turn this into garbage! try the fallout 3style make this game to rock!

Makaatsu
Makaatsu

Man next gen deus ex is going to rock, i cant believe i didn't know it was being made!

Dysantic
Dysantic

Forget all the other games, just make Hitman 5!!!!

orion124
orion124

I hope production on Deus Ex 3 goes smoothly, I can't wait for that one!