BERLIN – German broadcaster RTL and Paramount Global (NASDAQ: PARA) have withdrawn their bid to merge Super RTL, a children’s television network, with Nickelodeon, the German cartel office said on Tuesday.
The office said the withdrawal had occurred after it informed the companies that it intended to prohibit the planned merger.
In April, Super RTL, belonging to Bertelsmann’s RTL Group, said it had struck a deal to acquire Nickelodeon series in Germany.
Under the agreement, Super RTL would have acquired a rights package to bring current and upcoming series from Nickelodeon, owned by Paramount Global, to its television program.
Popular Nickelodeon series include “PAW Patrol” and “SpongeBob SquarePants”.
German cartel office head Andreas Mundt said its intention to prohibit the merger was mainly due to the limited space for advertising targeted at children aged three to 13.
“There are only a very limited number of companies that offer advertising space specifically aimed at children, above all RTL with its relevant TV program,” he said.
Even if YouTube Kids were included in the analysis, Super RTL remains the dominant provider of such advertising and would further significantly grow with the addition of Nickelodeon, the cartel office said.
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
