Netflix came under intense scrutiny in Washington over its $82bn (£61bn) bid for Warner Bros Discovery. Lawmakers questioned whether the merger would benefit consumers or workers. Senators from both parties expressed concern during a high-profile antitrust hearing.
Senators fear reduced competition and rising costs
Members of the Senate antitrust subcommittee warned the deal could weaken competition across entertainment markets. Several senators said consumers might face higher subscription prices. Others raised concerns about the long-term future of cinemas.
The Department of Justice is reviewing the proposed merger. Approval would give Netflix control of Warner Bros film and television studios. The deal 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 talks.
Cross-party opposition shapes the hearing
The hearing revealed strong opposition from both Democrats and Republicans. Lawmakers raised different arguments but shared scepticism. Justice Department regulators will decide whether to approve or block the merger.
Senators questioned Netflix co-chief executive Ted Sarandos throughout the session. They focused on cinemas, subscription prices, and workforce impacts. Lawmakers also pressed him on Netflix’s plans for Warner Bros.
Netflix offers reassurances on films 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 deliver 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 those claims. He warned that consolidating major employers weakens labour competition. Lee said workers often lose leverage after mergers.
Cultural disputes enter antitrust debate
Some Republican senators shifted the discussion toward cultural issues. Senator Eric Schmitt accused Netflix programming of promoting what he called “overwhelmingly woke” content. His comments added a culture-war element to the hearing.
One major bidder remained absent from the session. 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 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 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 offer to counter Paramount’s bid. The company said it would fund the acquisition entirely with cash. It previously proposed a mix of cash and shares.
Lawmakers challenge claims about YouTube rivalry
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 argument. Senator Lee questioned whether YouTube qualifies as a direct competitor. Paramount has also pushed back against Netflix’s claims.
