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Senate raises antitrust concerns over Netflix-Warner merger
Netflix executives faced sharp questions from US lawmakers on Tuesday over the company's proposed $82 billion acquisition of Warner Bros Discovery, with bipartisan concerns about reduced competition, higher prices, and the future of cinemas.
Key objections from lawmakers
Members of the Senate antitrust subcommittee pressed Netflix co-CEO Ted Sarandos on the deal's potential impact on consumers, workers, and the entertainment industry. Senators from both parties warned that the merger could lead to fewer choices and higher subscription costs.
Republican Senator Mike Lee highlighted risks to labor competition, arguing that combining two major employers in the same market could weaken job opportunities. Meanwhile, Senator Eric Schmitt, another Republican, criticized Netflix's content as "overwhelmingly woke," framing the debate in cultural terms.
Netflix's defense and industry reactions
Sarandos sought to allay concerns, pledging that Warner Bros films would maintain a 45-day theatrical window and that the studio would operate largely unchanged. He also claimed the merger would benefit consumers by offering "more content for less," noting that 80% of HBO Max subscribers already pay for Netflix.
However, critics argue the deal would concentrate too much power in a single company. Paramount Skydance, a rival bidder backed by billionaire David Ellison, has offered $108 billion for Warner Bros but was notably absent from the hearing. Democratic Senator Cory Booker called Paramount's no-show "frustrating," saying either merger would give one corporation excessive control over media.
Regulatory hurdles and next steps
The Department of Justice (DoJ) is reviewing the deal, with authority to approve or block it. Netflix recently revised its offer to pay entirely in cash, abandoning an earlier plan to use a mix of cash and stock.
Lawmakers also debated whether YouTube competes with Netflix. Sarandos argued they vie for the same content, viewers, and ad revenue, calling YouTube a "TV" platform. Some senators, including Lee, disagreed, while Paramount has rejected the comparison.
What's at stake
If approved, the merger would give Netflix control of Warner Bros studios and HBO Max, reshaping the streaming and film landscape. Critics warn of monopolistic risks, while Netflix insists the deal would expand choices for consumers.
"With either merger, another corporation will have increased control over what we see, what we hear, and what news we consume," Senator Booker said.
