Senate Scrutinizes Netflix's Mega-Merger with Warner Bros Discovery

U.S. senators questioned Netflix Co-CEO Ted Sarandos about the company's $82.7 billion bid to acquire Warner Bros Discovery. Concerns were raised about potential reductions in competition and jobs within the entertainment industry. The U.S. Department of Justice is assessing the deal, alongside a competitive bid from Paramount Skydance.

U.S. senators subjected Netflix Co-CEO Ted Sarandos to extensive questioning on Tuesday regarding the entertainment giant's $82.7 billion acquisition attempt of Warner Bros Discovery. Spearheaded by U.S. Senator Mike Lee, the hearing focused on how the merger might shape competition within the entertainment sector.

The scrutiny comes as the U.S. Department of Justice reviews the proposed deal alongside a rival bid from Paramount Skydance. Paramount, led by CEO David Ellison, has been vocal in asserting it offers a cleaner regulatory process. Meanwhile, the allure of Warner Bros' cinematic assets, like 'Game of Thrones' and 'Harry Potter,' has made it a coveted target.

Concerns from lawmakers traversed party lines, centering on reduced competition and job impacts. Senator Cory Booker discussed potential presidential influence, noting President Trump's stated intent to examine the merger. Netflix cited Nielsen statistics on YouTube's viewership dominance but faced challenges over the streaming platform's potential market impact.

(With inputs from agencies.)