Netflix faced tough questions from US senators over its $82bn takeover of Warner Bros Discovery, amid concerns for consumers, workers, and competition. On Tuesday, members of the Senate antitrust subcommittee, including Democrats and Republicans, warned the deal could raise prices and threaten cinemas.
The Department of Justice is reviewing the merger, 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 its competing offer. Senators’ questions revealed bipartisan unease, while the DoJ decides whether to approve or block the deal.
Senators probe theatres and workforce
Lawmakers asked Netflix co‑CEO Ted Sarandos about theatrical releases, subscription costs, and jobs in the entertainment sector. Sarandos pledged Warner Bros films would keep a 45‑day theatrical release and promised to maintain the studio’s current operations. He argued the merger would give consumers more content for less money, noting most HBO Max subscribers already pay for Netflix.
Sarandos also claimed the merger would create additional American jobs. Republican Senator Mike Lee warned that combining two major employers could reduce competition for labor. Some Republicans raised broader cultural concerns. Senator Eric Schmitt criticized Netflix’s content as “overwhelmingly woke.”
Paramount stays absent as bidding battle continues
CEO David Ellison did not attend the hearing, even though his company continues to pursue Warner Bros. Paramount says its $108bn offer exceeds Netflix’s. Critics warned either deal would concentrate too much power. Senator Cory Booker called Ellison’s absence “frustrating” and said he declined to testify. Booker added that either merger would increase corporate control over media content.
Netflix recently revised its offer to an all‑cash deal to compete with Paramount. Senators also debated whether YouTube counts as a Netflix competitor. Sarandos said Netflix competes with YouTube for content, viewers, and advertising, noting “YouTube is not just cat videos anymore. YouTube is TV.”
Some lawmakers, including Lee, disagreed, saying YouTube should not be counted as a rival. Paramount also rejected Netflix’s claims about market competition.
