Netflix faced renewed pressure in Washington over its $82bn (£61bn) plan to buy Warner Bros Discovery. Lawmakers questioned whether the merger would help consumers or workers. Senators from both parties expressed deep scepticism during an antitrust hearing.
Senators warn of weaker competition and higher prices
Members of the Senate antitrust subcommittee raised concerns about shrinking competition in entertainment markets. Several senators warned 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 hand Netflix control of Warner Bros film and television studios. The deal would also include the HBO Max streaming service.
Rival bidder Paramount Skydance continues to push a competing offer. The company has not withdrawn despite repeated setbacks.
Bipartisan doubts dominate antitrust hearing
The hearing exposed rare bipartisan alignment against the deal. Democrats and Republicans raised different issues but shared concern. Justice Department regulators will decide whether the merger proceeds.
Senators questioned Netflix co-chief executive Ted Sarandos at length. They pressed him on theatres, pricing, and workforce effects. Lawmakers also asked about Netflix’s plans for Warner Bros studios.
Netflix defends deal with promises on theatres
Sarandos pledged a 45-day theatrical release window for Warner Bros films. He said Netflix would run the studio largely as it operates today. He argued the merger would strengthen the 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 merger would create more American jobs.
Republican Senator Mike Lee disputed those claims. He warned that consolidating large employers weakens labour competition. Lee said workers often lose leverage after mergers.
Culture-war arguments enter the spotlight
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 shifted part of the debate away from economics.
One key bidder did not appear at 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 is stronger. Critics have attacked both bids. They argue either deal would concentrate too much power.
Democrats criticise Paramount’s absence
Democratic Senator Cory Booker criticised Ellison’s absence. He called the decision frustrating. Booker said Ellison declined a direct invitation.
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 news influence.
Netflix recently revised its offer to counter Paramount. The company said it would fund the acquisition entirely with cash. It earlier proposed a mix of cash and shares.
YouTube rivalry claims face scepticism
The subcommittee also examined whether Alphabet’s YouTube competes with Netflix. Sarandos said both platforms fight for content, viewers, and advertising revenue. He said YouTube now operates like television.
Several lawmakers rejected that view. Senator Lee questioned whether YouTube qualifies as a direct rival. Paramount has also challenged Netflix’s claims.
