RTL and Paramount Cancel Merger Amid Regulatory Pushback

German broadcaster RTL and Paramount (PARA:US) recently disclosed that they have pulled back from their planned merger of Super RTL and Nickelodeon, according to a statement from Germany's Federal Cartel Office on Tuesday. The decision to abandon the merger came after the office indicated it would likely block the deal.

Super RTL, owned by Bertelsmann's RTL Group announced in April that it had reached an agreement to bring Nickelodeon’s content to German audiences. This deal would have allowed Super RTL to broadcast both current and upcoming Nickelodeon series, which Paramount Global owns.

The planned acquisition would have included well-known shows like "PAW Patrol" and "SpongeBob SquarePants," expanding Super RTL's lineup.

However, the German Cartel Office expressed concerns about the merger’s potential to harm competition in the children’s advertising market. Andreas Mundt, head of the office, explained, "Only a small number of companies offer advertising space targeted specifically at children, with RTL holding a dominant position in this field."

Even with alternatives like YouTube Kids, Super RTL remains the primary provider of children’s advertising space in Germany. The addition of Nickelodeon would have further cemented its dominance, leading the office to likely prohibit the merger.

On the U.S. congressional trading front, Paramount has seen significant sell-offs from two prominent political figures.

Since the second quarter of 2024, Democratic Representative Ro Khanna and Republican Senator Tommy Tuberville have been gradually reducing their stakes in the media giant. Both parties are stepping back from their Paramount positions, signaling a bipartisan retreat from the company.