Netflix faced tough questioning in Washington over its $82bn (£61bn) bid to acquire Warner Bros Discovery. Lawmakers doubted whether the deal would benefit consumers or workers. Senators from both parties voiced concerns during a Senate antitrust hearing.
Senators warn merger could reduce competition and raise prices
Members of the Senate antitrust subcommittee cautioned that the deal could weaken competition in entertainment markets. Several senators said subscription costs might rise. Others questioned the long-term survival of cinemas if the merger is approved.
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 ownership of HBO Max.
Rival bidder Paramount Skydance continues to push a competing offer. The company remains active despite repeated setbacks.
Bipartisan scepticism shapes the hearing
The hearing highlighted widespread concern from both Democrats and Republicans. Lawmakers raised different points but shared unease about consolidation. Justice Department regulators will decide whether to approve or block the deal.
Senators questioned Netflix co-chief executive Ted Sarandos on theatres, subscription pricing, and workforce impacts. Lawmakers also pressed him on Netflix’s plans for Warner Bros studios.
Netflix promises theatres, stability, and jobs
Sarandos pledged a 45-day theatrical release window for Warner Bros films. He said Netflix would run the studio largely as it operates today. He argued the merger would strengthen the entertainment sector.
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 deal would create more American jobs.
Republican Senator Mike Lee challenged those assurances. He warned that merging major employers weakens labour competition. Lee said workers often lose bargaining power after consolidation.
Culture-war criticism enters discussion
Some Republican senators turned the focus 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 debate.
One key bidder did not appear at the hearing. 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 better value. Critics have condemned both bids, saying either deal would concentrate too much power.
Democrats criticise absence of rival bidder
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 increase corporate control over media. He said larger companies would shape what audiences watch and hear. He also raised concerns about influence over news consumption.
Netflix recently updated 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 question YouTube as a rival
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 like television.
Several lawmakers rejected that comparison. Senator Lee questioned whether YouTube qualifies as a direct competitor. Paramount has also challenged Netflix’s claims.
