Senate Questions Netflix CEO on Warner Bros. Merger

U.S. senators grilled Netflix co-CEO Ted Sarandos on Tuesday about the streaming service's proposed multi-billion-dollar acquisition of Warner Bros. Discovery, raising alarms over potential antitrust issues, higher consumer prices and job losses in the entertainment sector.

The hearing, held by the Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy and Consumer Rights, examined the competitive effects of the deal, which Netflix announced in December. The acquisition targets Warner Bros. Discovery's streaming platforms, including HBO Max and Discovery, as well as its movie and TV production studios. Netflix, the world's largest subscription video-on-demand provider with 301.6 million global subscribers as of January 2025, would absorb Warner Bros. Discovery's 128 million streaming users, creating a combined entity with significant market power. The deal excludes Warner Bros. Discovery's cable news assets, such as CNN.

Sarandos defended the merger, arguing it would enhance competition rather than stifle it. "Netflix and Warner Bros. both have streaming services, but they are very complementary," he told the subcommittee. He noted that 80 percent of HBO Max...