According to a Bloomberg report, Paramount is considering selling major children's television networks including Nickelodeon and Cartoon Network to address European Union antitrust concerns over the proposed $100 billion merger with Warner Bros. Discovery. The EU has a July 7 deadline to either clear the deal or open an in-depth review, putting pressure on Paramount's new owner David Ellison to make concessions.

The $100 billion bet that threatens Nickelodeon and Cartoon Network

As Bloomberg reported, Paramount's willingness to offload its kids' channels marks a significant concession in the race to merge with Warner Bros. Discovery. Skydance Media completed an $8 billion merger with Paramount earlier this year, with David Ellison taking the helm. If Ellison succeeds in acquiring WBD, the combined entity would unite Hollywood studios behind franchises like Harry Potter and Mission: Impossible with networks such as CNN, CBS, and HBO Max — creating one of the most powerful media empires in the world.

But the EU's antitrust review has zeroed in on the children's television segment, where Paramount owns Nickelodeon and Warner Bros.. Discovery owns Cartoon Network. selling these assets could reduce fears of reduced competition in the European market, according to the report.

Why the 40% market share threshold is the obstacle

Bloomberg Intelligence analyst Jennifer Rie told Bloomberg: "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." That concrete benchmark explains why Paramount is voluntarily offering to sell the very networks that define its kids' programming legacy — and why the EU may demand even more concessions.

The source notes that Paramount declined to comment on the EU probe but stated it has "been engaged with all regulatory and law enforcement bodies in a constructive and transparent manner."

David Ellison's balancing act: cinema promises vs. streaming reality

Ellison has publicly stated he plans to keep movies in cinemas, allaying fears that the merger would accelerate a shift to streaming-only releases. However, as the source notes, Paramount+ is a major streaming competitoor, and the future of theatrical releases "really does hang in the balance." Bloomberg reported that major cinema executives are worried about the impact of the merger on theatrical windows. Ellison's pledge to maintain a cinematic presence runs up against the logic of a combined streaming giant that may prioritize its own platform.

Who will buy the beloved cartoon brands? A bake sale joke and a serious question

Alex Hirsch , creator of Gravity Falls — a Cartoon Network show — reacted to the news with a joke on X: "How much does Cartoon Network cost? What if we threw the BIGGEST bake sale." He later clarified: "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." The Bloomberg report did not name any potential buyers for Nickelodeon or Cartoon Network, leaving a major open question about who might take ownership of these cultural institutions — and whether the sale will prioritize financial value over creative stewardship.

The source also highlights another potential complication: the merger's funding, largely from Middle Eastern sources, could trigger the EU's Foreign Subsidies Regulation, adding another layer of regulatory risk. Paramount and Ellison's path to a completed merger is far from clear.