Following the announcement that SCi and Warner Bros have formed a strategic partnership that will see the US media giant act as distributor for the publisher's titles in the North America, the SCi share price fell a further 17 per cent at the start of trading today.
The announcement, which also included a significant SCi share purchase by Warner Bros, as well as a new share placement at 35 pence per share, failed to stimulate the company's stock, which has fallen from 520 pence last July to 46.5 pence at the time of writing.
Much of the price erosion happened during an elongated period of uncertainty as the publisher courted, then rejected, acquisition offers. A change in management early in 2008 saw a small increase in confidence, while another offer was rejected earlier this week over concerns about the long-term financing of the company.
The partnership unveiled today is designed to address those financing concerns, with cost savings revealed as part of a large restructuring process, but as yet investors appear unimpressed.