After much speculation about a deal between SCi Entertainment and either Time Warner or NBC Universal, today SCi officials have confirmed that the company has signed a new agreement with Warner Bros. SCi is raising £60 million (about $119 million) through the placing and open offer of 171,605,424 new shares. As part of the deal, SCi has also entered into a distribution agreement with Warner Bros. Home Entertainment Inc. for the U.S., Canada and Mexico, in order to drive its growth in the North American market.

SCi said that following completion of the fund raising, it will have "substantial cash balances in addition to its new committed £25 million debt facility."

"Today we have significantly strengthened our relationship with Warner Bros. one of the world's largest media groups, to create an exciting strategic partnership, giving us increased scale in the North American market, to the benefit of all our major franchises," said Phil Rogers, SCi CEO. "The new financing puts us in a clear position to deliver on the strategic business plan which we announced in February with focus on cornerstone studios and core franchises, delivering high-quality, world class games."

"This investment underscores Warner Bros' commitment to becoming a major presence in the video game business," added Kevin Tsujihara, President, Warner Bros. Home Entertainment Group. "With SCi's new management team in place along with their track record of rich franchises like Tomb Raider, Hitman and Deus Ex we believe we have formed an exciting partnership and a powerful engine for growth."

SCi also noted that progress on Tomb Raider: Underworld "remains encouraging." The game is currently on track to ship worldwide before Christmas 2008, the company said.