Physical Address
60 Ekwema Cres, Layout 460281, Imo
Netflix and Warner Bros. to Face Skeptical Panel Over Merger Deal
Netflix and Warner Bros. Discovery are set to face tough questions from a U.S. Senate panel on Tuesday. The two companies want to merge in an $82.7 billion deal. But lawmakers worry it will hurt competition in the streaming video market. Netflix co-CEO Ted Sarandos and Warner Bros. chief strategy officer Bruce Campbell will testify before the Senate’s antitrust subcommittee to defend the plan.
Sarandos plans to explain how the merger would help spread Warner Bros.’ famous movies, like those from Casablanca to Batman, to more people. This would give viewers more content choices. The deal is one of the biggest in the media world in years. It could change how entertainment works for everyone.
Read Next: PayPal Appoints HP’s Enrique Lores as New CEO
A rival company, Skydance Corp. from Paramount, won’t show up. Its chairman and CEO, David Ellison, turned down the invitation last week, according to Bloomberg. Ellison is the son of tech billionaire Larry Ellison, a big supporter of former President Trump. He said his testimony wouldn’t help because Warner Bros. rejected Skydance’s offers. Instead, he offered written comments and said he’d appear if his deal moves forward later.
U.S. regulators are already checking the merger closely. The Justice Department and Europe’s antitrust agency, the European Commission, are reviewing it for problems. State attorneys general, including California’s, will likely look at it too. The Senate hearing adds more pressure.
Company leaders will argue that people often pay for several streaming services at once. They see Netflix as a main service that fights big rivals like Disney’s Disney+/Hulu, Amazon Prime, and Google’s YouTube. Warner Bros.’ main service, HBO Max, is usually just an extra add-on for viewers. Data from Nielsen shows the combined companies would make up only about 10% of all watching time. This means they won’t control too much of the market, the companies say.
But the Senate panel won’t be friendly. Republican Senator Mike Lee from Utah leads the hearing. He already wrote a letter on January 22 saying he has “grave concerns.” Lee thinks Netflix might be using a long antitrust review to hurt Warner Bros. and make it easier to buy them cheap.
Read Next: How Improved is Telecom Service in Nigeria One Year After 50% Tariff Hike?
Democrats on the panel have worries too. New Jersey’s Cory Booker, the top Democrat, hasn’t said much publicly. But California’s Adam Schiff and Minnesota’s Amy Klobuchar have spoken out. They question the deal itself and worry the review might get political.
This merger battle highlights big changes in streaming. Viewers want more movies and shows, but regulators fear fewer choices and higher prices if giants team up. Netflix and Warner Bros. hope to convince the panel their plan helps everyone. Still, with so many reviews ongoing, the deal faces a rocky road ahead.
Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.
