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.