REUTERS/Dado Ruvic/Illustration
Bloomberg reports that the company does not want to change the structure of the deal, but sees the sale of individual children’s channels as a possible concession to European regulators. The focus is on the overlap between the assets of Nickelodeon and Cartoon Network, two major players in the children’s content market.
The European Commission has until July 7 to decide the fate of the deal: either give the green light or open an antitrust investigation. Regulators are assessing whether the merger will lead to concentration in the market of children’s television and content for family audiences.
Separately, the European Commission is examining the deal’s impact on the movie theater market. According to Bloomberg, regulators questioned operators about the timing of movie distribution and possible changes in business models after the merger.
If Paramount makes formal concessions, offers should be made as early as early July. Otherwise, the deal risks going into the second phase of the investigation, which would delay the process for at least several months.
In parallel, pressure is growing in the UK: the local antitrust authority is conducting a preliminary investigation amid concerns from the film industry and trade unions.
In the US, federal authorities are more likely to approve the deal, according to Bloomberg estimates. However, resistance is growing at the state level: a coalition of about a dozen attorneys general, including California, is preparing a possible lawsuit to block the merger.
Regulators fear the combined company will strengthen the studios’ bargaining position with content creators and industry workers. California confirms the investigation is ongoing, but details of possible legal action have not been disclosed.
