Bloomberg has reported that Paramount is willing to sell major kids' channels, including Nickelodeon and Cartoon Network, as the EU is putting up roadblocks while the $100 billion Warner Bros. merger hangs in the balance. The company Paramount may have to sell its major TV networks due to the ongoing EU review of the Warner Bros. Discovery (WBD) merger.
Paramount may have to sell major TV networks to save the WBD merger. The company Paramount began in 1912 when immigrant entrepreneur Adolph Zukor founded the Famous Players Company to adapt stage plays into motion pictures.
Two years later, distributor W.W. Hodkinson formed Paramount Pictures to release Zukor's movies, and it became the industry's first successful distribution network. Now, Skydance Media has merged with Paramount in an $8 billion deal, with David Ellison taking the helm. Bloomberg has reported that Paramount is willing to sell major kids' channels, including Nickelodeon and Cartoon Network, as the EU is putting up roadblocks while the $100 billion Warner Bros. merger hangs in the balance.
The EU has a deadline for July 7 to either clear the deal or to open an in-depth review, so Paramount is faced with a tough decision as selling assets could prove to lessen fears of competition and threats within the market. If Ellison succeeds in his plans to acquire WBD, that would make Paramount one of the most powerful media empires in the world, uniting two Hollywood studios behind titles such as Harry Potter and Mission: Impossible with major networks such as CNN, CBS, and HBO Max.
Bloomberg Intelligence analyst Jennifer Rie stated: 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. Concerns would be raised if combined market shares exceed 40% in any country. Not only are Nickelodeon and Cartoon Network a major worry, but major cinema CEOs and lovers of films worry about theatrical releases in the future as the impact could be major.
Paramount has the major streaming giant, Paramount+, which could potentially leave very little for theaters, meaning that the future of cinema really does hang in the balance. However, Ellison has stated he plans to keep movies in cinemas, because it is a possibility that the future of movies no longer require a theatrical release.
Paramount declined to comment to Bloomberg regarding the EU probe and stated, it's been engaged with all regulatory and law enforcement bodies in a constructive and transparent manner and will continue to do so. Many are also growing concern over the funding of the merger, which is largely from the Middle East, and due to the recent Foreign Subsidies Regulation, it could also prove to be another major factor in the EU's decision.
Alex Hirsch, creator of Gravity Falls, commented on the recent news and jokingly stated, How much does Cartoon Network cost? What if we threw the BIGGEST bake sale. , not long before releasing an official statement on X regarding the impending ruling: This is a joke guys, cartoonists don't have Zazlov money.
But I do wish SOMEONE who actually loved animation and didn't just want to scrap these beloved iconic brands for tax write offs would protect them from these horrifying mergers. Paramount and Ellison's planned merger may be harder to grasp than initially thought
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