Paramount Global is exploring selling a majority stake in Noggin, its online learning service for preschool children, according to people familiar with the situation, part of the entertainment company’s efforts to give priority to its Paramount+ and Pluto TV streaming services.
Much of Noggin’s content, including “PAW Patrol” and “Peppa Pig,” is created by Nickelodeon, a cable channel also owned by Paramount, and appears on Paramount+ as well as Noggin’s own direct-to-consumer platform.
Paramount sees an opportunity to develop Noggin into more of an interactive learning platform and is seeking an investor to help it do that, the people said.
Paramount wants to retain a stake in Noggin, believing there is a revenue opportunity from the digital service as a minority investor if someone else develops it, the people said.
TYLER PERRY EXPRESSED INTEREST IN BUYING MAJORITY STAKE OF BET MEDIA GROUP FROM PARAMOUNT GLOBAL
The stake sale explorations are the latest example of Paramount’s strategy to review all of its businesses to align them with supporting Paramount+.
The company is also exploring selling a majority stake in BET Media Group, which includes cable channels BET and VH1, The Wall Street Journal previously reported. Earlier this year, Paramount decided to fold its Showtime streaming service into Paramount and rebrand the Showtime premium channel as “Paramount+ With Showtime.”
PARAMOUNT+ TO RAISE SUBSCRIPTION PRICES
Noggin, which caters to children aged two to seven years, started in 1999 as a joint venture between Nickelodeon and “Sesame Street” parent Sesame Workshop. It initially included its own TV channel. Nickelodeon bought out Sesame Workshop’s stake in 2002, and in 2009 the Noggin TV channel was replaced by Nick Jr.