Netflix faced intense questioning in Washington over its $82bn (£61bn) bid 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 warn merger could harm competition and increase costs
Members of the Senate antitrust subcommittee said the deal could reduce competition across entertainment markets. Several senators warned subscription costs might rise. Others questioned whether cinemas could survive if regulators approve the merger.
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 HBO Max.
Rival bidder Paramount Skydance continues to push a competing offer. The company remains active despite repeated setbacks.
Bipartisan scepticism dominates the hearing
The hearing revealed scepticism from both Democrats and Republicans. Lawmakers raised different concerns but shared unease about market consolidation. Justice Department regulators will decide whether to approve or block the deal.
Senators questioned Netflix co-chief executive Ted Sarandos on cinemas, subscription pricing, and workforce effects. They also pressed him on Netflix’s plans for Warner Bros studios.
Netflix pledges theatrical releases and job creation
Sarandos promised 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 major employers weakens labour competition. Lee said workers often lose bargaining power after consolidation.
Culture-war concerns enter the debate
Some Republican senators raised cultural issues during the hearing. Senator Eric Schmitt accused Netflix programming of being “overwhelmingly woke.” His remarks added a culture-war dimension to the discussion.
One major bidder did not attend 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 greater value. Critics have condemned both bids, saying either deal would concentrate too much power.
Democrats criticise rival bidder’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 increase corporate control over media. He said large companies would shape what audiences watch and hear. He also raised concerns about influence over news consumption.
Netflix recently updated its offer to counter Paramount’s bid. The company said it would fund the acquisition entirely with cash. It previously proposed a mix of cash and shares.
Senators debate YouTube as a competitor
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.
