Netflix worked to reassure sceptical lawmakers about its proposed $82bn (£61bn) takeover of Warner Bros Discovery. The company said the merger would benefit consumers, workers, and the wider entertainment industry. Lawmakers from both parties challenged those claims during a Senate hearing.
Lawmakers warn about competition, prices, and cinemas
Members of the US Senate antitrust subcommittee raised concerns on Tuesday about reduced competition. Senators warned the deal could lead to higher prices for consumers. Several lawmakers also questioned the future of cinemas if regulators approve the merger.
The Department of Justice is currently reviewing the proposed deal. If approved, the transaction would give Netflix control over Warner Bros film and television studios. Netflix would also acquire the HBO Max streaming service.
Rival bidder Paramount Skydance continues to pursue a competing offer. The company has not withdrawn despite repeated rejections from Warner Bros leadership.
Bipartisan opposition shapes the Senate hearing
The questioning highlighted bipartisan opposition to the merger. Democrats and Republicans raised concerns for different reasons but shared unease. Justice Department regulators will decide whether to approve or block the deal.
During the hearing, senators questioned Netflix co-chief executive Ted Sarandos. They asked about the future of cinemas, subscription prices, and entertainment jobs. Lawmakers also pressed him on how Netflix would manage Warner Bros studios.
Netflix pledges theatres, stability, and jobs
Sarandos promised a 45-day theatrical release for Warner Bros films. He said Netflix would run the studio largely as it operates today. He argued the merger would strengthen the entertainment ecosystem.
Sarandos said the combined company would offer more content at lower cost. He noted that 80% of HBO Max subscribers already pay for Netflix. He also insisted the merger would create more American jobs.
Republican Senator Mike Lee challenged that claim. He warned that consolidating major employers weakens labour competition. Lee said workers often lose leverage after large mergers.
Culture-war arguments enter antitrust debate
Some Republican senators focused on cultural issues during the hearing. Senator Eric Schmitt accused Netflix programming of promoting what he called “overwhelmingly woke” content. His remarks added a culture-war angle to the proceedings.
One major player was absent from the hearing. Paramount chief executive David Ellison did not testify despite his company’s ongoing bid. Paramount continues to seek control of Warner Bros.
Paramount, backed by the Ellison family, claims its $108bn proposal is superior. Critics have condemned both bids. They argue either deal would concentrate too much power in one company.
Democrats criticise Paramount’s absence
Democratic Senator Cory Booker criticised Ellison’s decision not to appear. He called the absence frustrating and unnecessary. Booker said Ellison declined a direct invitation to testify.
Booker warned that either merger would increase corporate control over media. He said larger companies would shape what audiences see and hear. He also warned about growing influence over news consumption.
Netflix recently updated its bid to counter Paramount. The company said it would fund the acquisition entirely in cash. It previously proposed a mix of cash and shares.
Is YouTube really a Netflix rival
The subcommittee also debated competition from Alphabet’s YouTube. Sarandos argued both platforms compete for content, viewers, and advertising. He said YouTube now functions as television.
Several lawmakers remained sceptical. Senator Lee questioned whether YouTube should count as a direct rival. Paramount has also rejected Netflix’s argument on that issue.
