Paramount Open to Selling Kids Channels to Secure EU Nod for $110 Billion Warner Deal

Paramount Skydance Corp. said it may divest children’s television networks to address European Union antitrust concerns over its $110 billion acquisition of Warner Bros. Discovery Inc., according to people familiar with the matter. The EU’s initial deadline to clear the deal or open an in-depth probe is July 7, 2026. The potential divestitures would target overlapping kids channels such as Nickelodeon and Cartoon Network, which dominate Europe’s children’s TV market. Bloomberg Intelligence analyst Jennifer Rie warned that combined market shares exceeding 40% in any country would likely raise red flags. Other hurdles include calls from European cinemas for commitments on exclusive theatrical windows. Meanwhile, a group of U.S. states led by California’s attorney general may file a lawsuit to block the transaction as soon as June 2026. Paramount is aiming to close the deal in the third quarter, backed by $24 billion in equity financing from Middle Eastern sovereign funds including Saudi Arabia’s PIF.