Netflix faced tough questioning in Washington over its $82bn (£61bn) plan to acquire Warner Bros Discovery. Lawmakers challenged claims that the merger would help consumers and workers. Senators from both parties voiced scepticism during a high-profile antitrust hearing.
Senators sound alarm on competition and prices
Members of the Senate antitrust subcommittee warned the deal could weaken competition across entertainment markets. Several senators said consumers could face higher subscription prices. Others questioned the long-term future of cinemas after the merger.
The Department of Justice is reviewing the proposed transaction. Approval would give Netflix control over Warner Bros film and television studios. The agreement would also include ownership of the HBO Max streaming service.
Rival bidder Paramount Skydance continues to pursue a competing proposal. The company remains active despite repeated setbacks in negotiations.
Bipartisan concern dominates the hearing
The hearing revealed rare bipartisan concern about the merger. Democrats and Republicans raised different arguments but shared unease. Justice Department regulators will decide whether to approve or block the deal.
Senators questioned Netflix co-chief executive Ted Sarandos throughout the session. They focused on cinemas, subscription pricing, and workforce effects. Lawmakers also pressed him on Netflix’s plans for Warner Bros operations.
Netflix offers assurances on theatres 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 offer more content at lower cost. He noted that 80% of HBO Max subscribers already pay for Netflix. He also said the deal would create more American jobs.
Republican Senator Mike Lee disputed those claims. He warned that merging major employers weakens labour competition. Lee said workers often lose leverage after large consolidations.
Cultural disputes surface in antitrust 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 discussion.
One major bidder remained absent from the hearing. Paramount chief executive David Ellison did not testify. His company continues to pursue control of Warner Bros.
Paramount, backed by the Ellison family, argues its $108bn proposal offers greater value. Critics have condemned both bids. They say either deal would concentrate excessive power in one company.
Democrats criticise absence of rival bidder
Democratic Senator Cory Booker criticised Ellison’s decision not to appear. He called the absence 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 question 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 operates like television.
Several lawmakers rejected that comparison. Senator Lee questioned whether YouTube qualifies as a direct competitor. Paramount has also pushed back against Netflix’s claims.
