Netflix faced renewed scrutiny in Washington over its $82bn (£61bn) bid for Warner Bros Discovery. Lawmakers questioned whether the merger would help consumers or workers. Senators from both parties voiced concerns during an antitrust hearing.
Senators warn deal could damage competition
Members of the Senate antitrust subcommittee warned the merger could weaken competition in entertainment markets. Several senators said consumers might face higher subscription prices. Others questioned the future 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 offer. The company remains in contention despite repeated setbacks.
Bipartisan scepticism dominates Senate hearing
The hearing showed broad scepticism from Democrats and Republicans. Lawmakers raised different concerns but shared unease about consolidation. 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 effects. Lawmakers also pressed him on Netflix’s plans for Warner Bros.
Netflix outlines promises on films and jobs
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 major employers weakens labour competition. Lee said workers often lose bargaining power after consolidation.
Culture-war arguments enter 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 element 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 stronger value. Critics have condemned both bids. They argue 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 powerful 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 push back on YouTube rivalry claims
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.
