Netflix struggled to convince US senators that its $82bn takeover of Warner Bros Discovery would benefit consumers, workers, and the entertainment industry. On Tuesday, the Senate antitrust subcommittee, including Democrats and Republicans, questioned the merger’s effects on competition, pricing, and cinemas.
The deal, now under Department of Justice review, would give Netflix control of Warner Bros’ film and television studios and the HBO Max streaming service. Rival bidder Paramount Skydance continues to push its competing offer. Senators’ questions showed bipartisan concern, while the DoJ retains authority to approve or block the merger.
Senators probe impact on theatres and workforce
During the hearing, lawmakers asked Netflix co‑CEO Ted Sarandos about theatre releases, subscription prices, and employment in the entertainment sector. Sarandos pledged to maintain a 45‑day theatrical release for Warner Bros films and to operate the studio largely as it functions today. He claimed the merger would offer consumers more content for less money, noting that most HBO Max subscribers also subscribe to Netflix.
Sarandos added that the merger would create additional American jobs. Republican Senator Mike Lee warned that combining two major employers in one market could weaken competition for labor. While several Republicans focused on competition, others raised cultural concerns. Senator Eric Schmitt criticized Netflix’s programming as “overwhelmingly woke.”
Paramount absent as rivals clash
Paramount CEO David Ellison did not attend the hearing despite continuing efforts to acquire Warner Bros. Paramount, supported by the Ellison family, argues its $108bn offer exceeds Netflix’s proposal. Critics of both deals say either merger would concentrate too much power in one company. Senator Cory Booker called Paramount’s absence “frustrating” and said Ellison declined to testify. He warned that either merger would increase corporate control over media content.
Netflix recently revised its offer to an all‑cash deal to counter Paramount. The subcommittee also debated whether YouTube counts as a Netflix competitor. Sarandos said Netflix competes with YouTube for content, viewers, and advertising revenue, claiming “YouTube is not just cat videos anymore. YouTube is TV.”
Some lawmakers, including Lee, disputed this claim, arguing YouTube should not be considered a rival. Paramount also rejected Netflix’s assessment of market competition.
