Netflix faced sharp scrutiny in Washington over its $82bn (£61bn) effort to acquire Warner Bros Discovery. Lawmakers questioned whether the merger would benefit consumers or workers. Senators from both parties expressed concern during an antitrust hearing.
Senators question impact on competition and costs
Members of the Senate antitrust subcommittee warned the deal could reduce competition across entertainment markets. Several senators said the merger could push subscription prices higher. Others questioned the survival of cinemas if regulators approve the deal.
The Department of Justice is reviewing the proposed transaction. Approval would give Netflix control of Warner Bros film and television studios. The deal would also include the HBO Max streaming service.
Rival bidder Paramount Skydance continues to advance a competing proposal. The company remains in contention despite repeated setbacks.
Cross-party scepticism defines the hearing
The hearing revealed broad scepticism from Democrats and Republicans. Lawmakers raised different arguments but shared similar concerns. Justice Department regulators will decide whether to approve or block the merger.
Senators questioned Netflix co-chief executive Ted Sarandos throughout the session. They focused on cinemas, subscription prices, and workforce consequences. Lawmakers also pressed him on Netflix’s plans for Warner Bros.
Netflix offers promises on films and employment
Sarandos pledged a 45-day theatrical release window for Warner Bros films. He said Netflix would operate the studio largely as it does today. He argued the merger would strengthen the entertainment industry.
Sarandos said the combined company would deliver more content at lower cost. He noted that 80% of HBO Max subscribers already pay for Netflix. He also said the merger would create more American jobs.
Republican Senator Mike Lee challenged those assurances. He warned that merging large employers weakens labour competition. Lee said workers often lose bargaining power after consolidation.
Culture-war rhetoric enters merger debate
Some Republican senators shifted attention toward cultural issues. Senator Eric Schmitt accused Netflix programming of promoting what he called “overwhelmingly woke” content. His remarks added a culture-war dimension to the hearing.
One major bidder did not attend the session. Paramount chief executive David Ellison declined to testify. His company continues to pursue control of Warner Bros.
Paramount, backed by the Ellison family, argues its $108bn proposal offers superior value. Critics have condemned both bids. They argue either deal would concentrate too much power.
Democrats criticise Paramount’s absence
Democratic Senator Cory Booker criticised Ellison’s absence from the hearing. He called the decision frustrating. Booker said Ellison declined a direct invitation to testify.
Booker warned that either merger would expand corporate control over media. He said powerful companies would shape what audiences watch and hear. He also raised concerns about influence over news consumption.
Netflix recently revised its bid to counter Paramount’s challenge. The company said it would fund the acquisition entirely with cash. It previously proposed a mix of cash and shares.
Lawmakers dispute claims about YouTube rivalry
The subcommittee also examined whether Alphabet’s YouTube competes with Netflix. Sarandos said both platforms compete for content, viewers, and advertising revenue. He said YouTube now functions as television.
Several lawmakers rejected that comparison. Senator Lee questioned whether YouTube qualifies as a direct competitor. Paramount has also challenged Netflix’s claims.
