U.S. senators question Netflix over Warner Bros $82.7 billion deal

U.S. senators questioned Netflix co-CEO Ted Sarandos on Tuesday over how the company’s proposed $82.7 billion acquisition of Warner Bros Discovery would affect competition in the entertainment industry, according to Reuters.

The hearing was led by Senator Mike Lee, a Republican from Utah who chairs the Senate antitrust subcommittee. Sarandos testified alongside Bruce Campbell, Warner Bros Discovery’s Chief Strategy Officer. While the Senate cannot block the deal, lawmakers sought details on its potential impact on consumers, workers and competitors.

Lee said the transaction could reduce competition among streaming platforms and limit job opportunities for writers, actors and other entertainment workers. He also raised concerns that Netflix could steer movies away from theaters and restrict rivals’ access to Warner Bros’ major film franchises.

Netflix seeks to become the one platform to rule them all, Lee said.

The U.S. Department of Justice is reviewing the proposed acquisition, as well as a competing hostile bid from Paramount Skydance. Both companies are seeking Warner Bros Discovery for its film and television studios, large content library and franchises such as Game of Thrones, Harry Potter and DC Comics characters including Batman and Superman.

Paramount has argued that its bid would face fewer regulatory hurdles, though Warner Bros Discovery has rejected its offers. Paramount’s chief executive, David Ellison, is the son of Oracle co-founder Larry Ellison, who has close ties to U.S. President Donald Trump, Reuters said.

Lawmakers from both major parties have expressed concerns that the deal could reduce competition in the streaming market. Senator Cory Booker, the panel’s top Democrat, questioned Sarandos about whether Trump would play a role in reviewing the deal. Trump has said he would be involved.

“I don’t know if he’s involved or not,” Sarandos said.

Netflix has cited data from Nielsen showing that YouTube accounts for more television viewing time in the United States than other streaming services. However, Reuters reported that experts expect the Justice Department to examine competition more narrowly, focusing on subscription-based streaming platforms.

Lee also questioned Sarandos on comparisons between Netflix’s professionally produced content and YouTube’s largely ad-supported videos. Sarandos said there is no public breakdown of what audiences watch on YouTube, but described television viewing as highly competitive.

Lee said, if users are watching YouTube, HBO Max, they are not watching Netflix and CBS.