Netflix struggled to convince US senators that its $82bn takeover of Warner Bros Discovery would benefit consumers, workers, and the entertainment industry. On Tuesday, members of the Senate antitrust subcommittee, including Democrats and Republicans, expressed concerns about reduced competition, higher prices, and the future of cinemas if the merger proceeds.
The deal, under review by the Department of Justice, would give Netflix control of Warner Bros’ film and television studios and the HBO Max streaming service. Rival bidder Paramount Skydance continues to push a competing offer to acquire the company. Senators’ questions revealed bipartisan opposition, though the DoJ ultimately decides whether to approve or block the merger.
Senators question impact on theatres, jobs, and subscriptions
During the hearing, lawmakers pressed Netflix co‑CEO Ted Sarandos on theatre releases, subscription costs, and the effect on the entertainment workforce. Sarandos promised Warner Bros films would keep a 45‑day theatrical release, the current industry standard, and pledged to run the studio largely as it operates today. He argued the merger would deliver more content to consumers for less money, highlighting that 80% of HBO Max subscribers also pay for Netflix.
Sarandos also insisted the deal would generate more American jobs. Republican Senator Mike Lee warned that consolidating two major employers in one market could weaken competition for workers. While many Republicans raised competition concerns, some focused on culture‑war debates. Senator Eric Schmitt criticized Netflix content as “overwhelmingly woke.”
Paramount’s absence raises concerns
One notable absence from the hearing was Paramount CEO David Ellison, who continues to bid for Warner Bros despite repeated setbacks. Paramount, backed by the Ellison family, argues its $108bn offer surpasses Netflix’s. Critics condemned both proposals, saying either merger would concentrate too much power in one company. Senator Cory Booker called Paramount’s absence “frustrating” and noted Ellison declined to testify. He warned that either merger would increase corporate control over media content, including what audiences see and hear.
Netflix updated its offer last month, promising an all‑cash deal to compete with Paramount. Senators also debated whether Alphabet’s YouTube qualifies as a key rival to Netflix. Sarandos argued that Netflix competes with YouTube for content, viewers, and ad revenue, insisting “YouTube is not just cat videos anymore. YouTube is TV.”
Some lawmakers, including Lee, remained skeptical, saying YouTube should not be counted as a competitor. Paramount also rejected Netflix’s arguments about its market competition.
