Netflix struggled to convince US senators that its $82bn takeover of Warner Bros Discovery would benefit consumers, workers, and the industry. On Tuesday, the Senate antitrust subcommittee, including Democrats and Republicans, warned the merger could reduce competition, raise prices, and threaten cinemas.
The Department of Justice now reviews the deal, which would give Netflix control of Warner Bros’ film and TV studios and the HBO Max streaming service. Rival bidder Paramount Skydance continues to push a competing offer. Senators’ questions highlighted bipartisan concern, while the DoJ retains the authority to approve or block the merger.
Senators question impact on theatres and subscriptions
Lawmakers pressed Netflix co‑CEO Ted Sarandos on theatrical releases, subscription costs, and jobs in the entertainment sector. Sarandos promised Warner Bros films would keep a 45‑day theatrical release and pledged to run the studio largely unchanged. He argued the merger would offer consumers more content for less money, noting most HBO Max subscribers also pay for Netflix.
Sarandos added the merger would create additional American jobs. Republican Senator Mike Lee warned that combining two major employers could weaken competition for workers. Some Republicans focused on culture debates. Senator Eric Schmitt criticized Netflix programming as “overwhelmingly woke.”
Paramount absent amid competing bids
Paramount CEO David Ellison did not attend the hearing, despite continuing efforts to acquire Warner Bros. Paramount says its $108bn offer surpasses Netflix’s. Critics argue either deal would give one company too much power. Senator Cory Booker called Ellison’s absence “frustrating” and said he declined to testify. Booker warned that either merger would increase corporate control over media content.
Netflix recently updated its offer to an all‑cash deal to compete with Paramount. Senators also debated whether YouTube is a competitor to Netflix. Sarandos said Netflix competes with YouTube for content, viewers, and ad dollars, stating “YouTube is not just cat videos anymore. YouTube is TV.”
Some lawmakers, including Lee, disagreed, saying YouTube should not be considered a rival. Paramount also rejected Netflix’s argument about market competition.
