Paramount Skydance Corp. is considering the potential sale of some children’s television network assets if required to secure European Union approval for its $110 billion acquisition of Warner Bros. Discovery Inc., according to a report from Bloomberg.
Bloomberg reports that Paramount would prefer to keep its portfolio intact, but the company is open to divesting kids channels if European regulators identify competition concerns tied to the merger. Sources familiar with the matter told Bloomberg that no final decision has been made regarding whether remedies will be formally offered before the EU’s initial July 7 review deadline.
The transaction remains one of the largest media deals in recent history and represents one of the final major regulatory hurdles facing Paramount CEO David Ellison. Ellison secured the deal after a lengthy bidding process that included competition from Netflix. If approved, the acquisition would place control of a vast entertainment empire under the Ellison family.
The proposed merger would combine two major Hollywood film studios, along with major television and streaming assets, including CBS, CNN, HBO Max, and numerous cable networks. Bloomberg notes that the deal would also bring Nickelodeon and Cartoon Network, two of the most prominent children’s television brands operating across Europe, under the ownership of one company.
That overlap is expected to draw attention from regulators.
“It’s certainly likely that the commission will scrutinize overlaps between Paramount and Warner Bros. Discovery in the wholesale supply of children’s television channels” throughout Europe, Bloomberg Intelligence analyst Jennifer Rie said. She added that regulators could become concerned if combined market shares exceed 40% in individual countries.
Bloomberg further reports that children’s programming is not the only area being examined. European cinema operators have reportedly urged regulators to seek commitments related to theatrical exclusivity windows, which determine how long films remain available exclusively in theaters before being released on streaming platforms.
Under EU merger rules, companies generally have a limited opportunity during an initial review period to address competition concerns. Bloomberg reports that any proposed remedies would likely need to be submitted by early July to allow regulators sufficient time to evaluate them before making a decision.
The European Commission could approve the transaction outright, approve it with conditions, or launch a more extensive phase 2 investigation, which could extend the decision-making process by approximately three months or more.
Paramount declined to discuss specifics of the European review. However, the company told Bloomberg that it has been working with regulators “in a constructive and transparent manner.”
In the United States, the outlook appears somewhat more favorable. Bloomberg cites a recent report from Semafor indicating that federal antitrust regulators are preparing to approve the acquisition. However, a coalition of states led by California Attorney General Rob Bonta has been conducting its own investigation and could move to challenge the merger in court as early as this month.
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