Paramount Global may put its online learning service for preschoolers, Noggin, on the block, The Wall Street Journal reported Friday.
A potential sale would be the latest in a series of changes at the media conglomerate as the company seeks to beef up its streaming strategy. The report comes on top of the exploration of a sale of a majority stake in BET Media Group, which includes cable channels BET and VH1.
When reached for comment, Paramount+ declined to confirm nor deny the Journal’s reporting Friday.
The Noggin platform, born out of a 1999 joint venture between Nickelodeon and “Sesame Street” parent Sesame Workshop, caters to kids ages 2–7. It initially included its own TV channel, but that was replaced by Nick Jr. in 2009 after INickelodeon bought out Sesame Workshop’s stake in 2002, the Journal said.
Nickelodeon produces a good portion of Noggin’s content, including the popular “PAW Patrol” and “Peppa Pig,” which also appears on Paramount+.
Paramount hopes to keep a stake in Noggin and aims to find an investor to develop the platform into one more focused on interactive learning, the Journal reported. The company sees a revenue opportunity from the digital service as a minority investor if someone else develops it, the report said, citing people familiar with the situation.
Likewise, Paramount is expected to retain a stake in BET Media Group should a sale of that arm go through.
A source told TheWrap last month that Entertainment Studios founder Byron Allen had started talks with Paramount Global about taking a stake. Tyler Perry’s name has also surfaced. Paramount bought BET in 2000 for $2.3 billion.
The sales of either or both units would come on top of major strategy shifts at Paramount Global over the past year as it aims to boost subscriber growth for its streaming services. The company in February said it ended 2022 with more than 77 million global direct-to-consumer subscribers combined on Paramount+ and its FAST service Pluto TV.
One significant change is the bundling of Paramount+ and Showtime. In August, the company began offering a combined service that includes the Paramount+ library and Showtime’s content within the Paramount+ app. The effort also involves combining the creative leadership of Showtime and MTV Studios, along with the exit of former Showtime co-president Jana Winograde.
Last week, Paramount+ Chief Programming Officer Tanya Giles stepped down after three decades with the company. She had been named CPO in June 2021, and it was under her leadership that the streamer found several huge successes, most notably the “Yellowstone” spinoff “1923.”
