Netflix Leader Pushes Warner Deal Before Skeptical Lawmakers
Netflix has a message for lawmakers nervous about its $83 billion purchase of Warner Bros. Discovery: The deal will be good for Hollywood and for America.
One of Netflix’s co-chief executives, Ted Sarandos, told senators on Tuesday that the streaming giant would boost domestic film and television production and preserve opportunities for workers and consumers.
“We’re buying a company that has assets that we do not, and we will keep investing in Warner Bros.,” he said. “And we’ll keep growing the American entertainment industry.”
Mr. Sarandos faces questions in Washington and overseas about whether the deal, which would combine Netflix with a major movie studio and HBO, would create a Hollywood behemoth with the ability to raise prices, squeeze talent and degrade the moviegoing experience. Over roughly two hours, a bipartisan group of lawmakers from the Senate Judiciary Committee’s antitrust subcommittee lobbed critical questions at Mr. Sarandos, who responded with diplomatic answers and occasionally more pointed disagreement.
Senator Mike Lee of Utah, the Republican chair of the subcommittee, said, “All told, one might say that Netflix seeks to become the one platform to rule them all, or at least to exercise a significant amount of market dominance.”
He added, “The merger raises numerous antitrust concerns, in a nutshell, consolidating both production and distribution power.”
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