Warner/SCi deal doesn't make much sense - Pachter

Wedbush Morgan analyst Michael Pachter has questioned the logic behind this morning's announcement of the strategic partnership between Warner Bros and SCi, giving particular attention to what Warner is set to gain from the deal.

"None of this really makes all that much sense to me," he told "Warner is doubling down for less money and SCi gets a temporary boost. It isn't clear to me that this is enough cash for more than a year and a half of operations."

"It doesn't appear strategic at all, since all Warner Bros gets is a larger minority interest in a weak company, and they don't benefit in any meaningful way from the distribution deal."

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