Netflix faced heavy criticism in Washington over its $82bn (£61bn plan to acquire Warner Bros Discovery. Lawmakers questioned whether the merger would benefit consumers or workers. Senators from both parties raised concerns during an antitrust hearing.
Senators warn merger could weaken markets
Members of the Senate antitrust subcommittee warned the deal could reduce competition across entertainment markets. Several senators said consumers could face higher subscription prices. Others questioned how cinemas would survive after the merger.
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 transfer ownership of the HBO Max streaming service.
Rival bidder Paramount Skydance continues to press a competing offer. The company remains in the race despite repeated rejections.
Bipartisan scepticism dominates hearing
The hearing revealed strong opposition from Democrats and Republicans. Lawmakers voiced different concerns but shared deep scepticism. 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 prices, and workforce impacts. Lawmakers also asked about Netflix’s plans for Warner Bros studios.
Netflix defends merger with promises on films
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 sector.
Sarandos said the combined company would provide 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 challenged that argument. He warned that merging major employers weakens labour competition. Lee said workers often lose leverage after consolidation.
Culture-war criticism enters the debate
Some Republican senators turned attention toward cultural issues. Senator Eric Schmitt accused Netflix programming of promoting what he called “overwhelmingly woke” content. His remarks shifted part of the discussion away from economics.
One key bidder did not attend the hearing. Paramount chief executive David Ellison declined to testify. His company continues to pursue Warner Bros.
Paramount, backed by the Ellison family, says its $108bn proposal offers a better outcome. Critics have condemned both bids. They argue either deal would concentrate too much power.
Democrats attack rival bidder’s absence
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 expand 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 revised its offer to counter Paramount. The company said it would pay entirely in cash. It previously proposed funding the deal through cash and shares.
Lawmakers dispute YouTube competition 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 view. Senator Lee questioned whether YouTube qualifies as a direct competitor. Paramount has also challenged Netflix’s claims.
