Netflix co-CEO grilled by US senators over Warner Bros Discovery merger | Netflix

Netflix co-chief executive Ted Sarandos faced tough questioning on whether the streamer was “overwhelmingly woke” or killing off competition at a congressional hearing Tuesday afternoon focused on Warner Bros. Discovery’s acquisition of the film and streaming assets.

The hearing was conducted by the Senate subcommittee on antitrust, competition policy and consumer rights. Warner Bros Discovery’s chief revenue and strategy officer, Bruce Campbell, also testified in the packed Senate hearing room.

Both Sarandos and Campbell expressed concerns about how the merger would affect business in the entertainment industry, whether it would raise consumer prices for streaming services, result in less content for users, and whether it would hurt the movie theater business.

“We will operate the WarnerBros studio largely as we do today,” Sarandos said in response to a question from Democratic senator Adam Schiff about whether the merger would result in layoffs.

Republican Senator Josh Hawley specifically questioned Sarandos about the content of Netlix programming, using data that Sarandos said was “inaccurate.” Hawley said he and his wife have to review the Netflix content their kids want to watch because “I don’t trust what’s on your platform.”

“Why does so much of Netflix content for kids promote trans ideology?” he asked. “This ideology is present in much of your children’s programming.”

“Netflix programming has no agenda,” Sarandos said, adding: “We feature a wide variety of stories and programs that will appeal to a wide variety of tastes.”

“My concern is that you do not share my values ​​or the values ​​of many American parents,” Hawley said. “I think we should be concerned about what content you are promoting.”

Republican senator Eric Schmitt of Missouri pressed Sarandos about Netflix employees’ donations to Democrats, accusing him and his company of promoting “DEI and wokeness.” “The overwhelming majority of your stuff has woken up,” he added.

“We don’t have a political agenda,” Sarandos responded. “We have a lot of shows left, right and center on Netflix.”

Asked by a Democratic senator about concerns that past media mergers have led to job losses, Sarandos acknowledged that “most media mergers end badly” but said “this media merger will be different than any other because we really need these people.”

Republican senator Mike Lee, the subcommittee chairman, began the hearing by saying the merger raises antitrust concerns because Netflix will no longer compete with HBO Max, the streaming service it will acquire.

“The combined company will have both the incentive and the ability to disadvantage its rivals,” Lee said in his opening statement, adding that the deal could “further solidify Netflix’s dominance.”

In his opening remarks, Sarandos talked about the value of the merger and the need to compete in an extremely crowded market for content.

“With WBD, we will create more economic growth and more value for consumers,” Sarandos said. “We will deliver more content to consumers at less cost… We are acquiring a company with assets we do not own, and we will continue to invest in Warner Bros.”

First announced in early December, Netflix raised the purchase price in mid-January to ensure the $82.7 billion transaction was completed in an all-cash transaction.

Paramount Skydance also made several unsuccessful bids for all of Warner Bros. Discovery, including its television assets.

Cory Booker, the top Democrat on the Senate subcommittee, said he invited Paramount Skydance CEO David Ellison to attend the hearing but he declined. “It’s frustrating that Paramount Skydance isn’t here,” he said, but thanked Ellison for meeting with him and other senators to discuss his company’s offer.

Booker asked Sarandos about his conversations with Donald Trump and whether the president’s statement about being “involved” in the merger process was appropriate.

Sarandos said he had met with Trump “several times.” Sarandos said the meetings were mostly about the state of the entertainment industry rather than discussing the merger, adding that “of course he asked how the deal was going.”

“From my experience, I think the President has no other purpose than to create and protect jobs in America,” Sarandos said.

Antitrust groups and veterans of the antitrust field said Netflix’s acquisition of WBD raises antitrust concerns that are sure to be closely scrutinized by both domestic and international regulators.

While the Justice Department’s antitrust division will have the most important role in approving the deal, state attorneys general as well as the Federal Trade Commission may also file lawsuits to block the deal.

Booker expressed doubt that the review process would be handled fairly by the Trump administration.

“I think it’s really important that we gather a lot of information,” Booker said at the end of the hearing. “I don’t trust this administration’s judgment.”

But Sarandos expressed confidence that the Justice Department’s investigation “will be conducted on its merits.”