Paramount Skydance Corp. is prepared , if necessary, to divest some children’s TV network assets to help win European Union approval of its $110 billion bid for Warner Bros.  While Paramount is hoping to avoid selling off anything, it’s open to sacrificing kids channels if the EU raises red flags over overlaps that pose a threat to competition, according to people familiar with the matter who spoke under condition of anonymity, a Bloomberg report stated.

The sources added that the company is yet to make a decision on if, or when, it would submit formal remedies as the clock ticks toward the EU’s initial July 7 deadline to clear the blockbuster deal or open an in-depth review.

Scrutiny from the Brussels-based European Commission is one of the last hurdles Paramount Chief Executive Officer David Ellison must overcome after outmaneuvering rival suitor Netflix Inc. with multiple bids over more than five months, visits to Washington, meetings with shareholders and President Donald Trump and the personal backing of his billionaire father Larry Ellison, the Bloomberg report, filed on June 6, added.

The transaction, if approved by global regulators, would give the Ellison family control of one of the most powerful media empires in the world.

The takeover unites two Hollywood studios behind legendary films from ‘Casablanca’ and ‘Harry Potter’ to ‘Mission: Impossible’; two major news networks in CNN and CBS; the streaming powerhouse HBO Max and dozens of cable networks.

It also brings together Paramount’s Nickelodeon and Warner Bros Discovery’s Cartoon Network, two of the best-known children’s television brands in Europe — a market where about half of all kids channels are US-owned.

“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” across the region, said Jennifer Rie, a Bloomberg Intelligence analyst, “Concerns would be raised if combined market shares exceed 40 percent in any country.”

Kids content isn’t the only potential pitfall in the EU probe. Cinemas have called for commitments on exclusive theatrical windows, the period after a film’s cinema release when it can only be seen in theaters, before appearing on streaming services.

EU merger rules give buyers only a short window of opportunity to allay potential competition concerns — if any are flagged — during an initial phase 1 probe. In this case, remedies would have to be filed by the start of July to give officials a chance to test them out during a brief extension period.

The commission could then either clear the tie-up or open a so-called phase 2 probe, delaying a decision by about three months, though deadlines can be extended.

Paramount bosses are targeting a closing date in the third quarter of this year, with a rapid review process potentially opening the door for a quicker closure date, the Bloomberg report added.