Tue, 03 Feb 2026

Tue, 03 Feb 2026 Netflix and Warner Bros struggle to defend merger

Concerns were raised by a subcommittee including potential price rises and the future of cinemas.

* Netflix struggled to convince skeptical lawmakers that its proposed $82bn takeover of Warner Bros Discovery would benefit consumers and workers.
* US Senate antitrust subcommittee members raised concerns about reduced competition, potential price rises, and the future of cinemas if the merger goes ahead.
* Netflix co-chief executive Ted Sarandos testified before the committee, committing to releasing Warner Bros films for a 45-day theatrical period and promising to run the studio "largely as it is today".
* However, some lawmakers expressed concerns about the impact on competition and the entertainment workforce, with Senator Mike Lee warning that consolidating two major employers could weaken labor competition.
* Republican Senator Eric Schmitt accused Netflix content programming of being "overwhelmingly woke", while Senator Cory Booker criticized Paramount's absence from the hearing as "frustrating".
* The subcommittee also considered whether Alphabet's YouTube is a key competitor to Netflix, with Sarandos arguing that they are competing for the same content and viewers.
* Rival bidder Paramount Skydance continues to push its competing offer to buy Warner Bros Discovery.
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