Netflix’s Ted Sarandos grilled by senators over Warner Bros. deal

Netflix’s Ted Sarandos grilled by senators over Warner Bros. deal

Senators grilled Netflix Co-CEO Ted Sarandos on Tuesday at a listening to over how his company’s proposed $82.7 billion acquisition of Warner Bros. Discovery will have an effect on competitors across the leisure business.

US Senator Mike Lee led the listening to wherein Sarandos and Bruce Campbell, Warner Bros’ chief strategy officer, testified. While the Senate can’t itself prohibit the deal, the lawmakers demanded particulars on how the transaction would have an effect on customers, employees and opponents.

Lee, a Republican from Utah who leads the antitrust subcommittee, said the deal may lower competitors among streaming platforms and supply writers, actors and other leisure employees fewer jobs. It may also put Netflix ready to divert motion pictures away from theaters and reduce rivals’ entry to Warner Bros’ blockbuster content, he said.

Netflix co-CEO Ted Sarandos defended the streaming big’s bid for Warner’s film studios and HBO Max streaming service. Getty Images

“Netflix seeks to become the one platform to rule them all,” Lee said.

Warner Bros. coveted for studios, franchises

The Department of Justice is reviewing the transaction, together with a competing, hostile bid from Paramount Skydance.

Netflix and Paramount Skydance covet Warner Bros for its main movie and tv studios, intensive content library and franchises such as “Game of Thrones,” “Harry Potter” and DC Comics’ superheroes Batman and Superman.

Paramount has argued it can have a better regulatory path to approval. But Warner Bros has repeatedly rejected gives from Paramount, which might wind up deep in debt to finance the transaction.

Paramount’s CEO is David Ellison, whose father, billionaire Oracle co-founder Larry Ellison, has cultivated a detailed relationship with President Trump.

Mr. Monopoly made an look on Tuesday. Getty Images

Mike Lee, a Republican from Utah who leads the antitrust subcommittee, said the deal may lower competitors among streaming platforms and supply writers, actors and other leisure employees fewer jobs. Getty Images

Lawmakers from each major political events have voiced considerations that the deal will cut back competitors in the streaming market.

Cory Booker, the ranking Democrat on the panel, pressed Sarandos about the position Trump would play in reviewing the deal.

Trump said shortly after the deal was announced that he would be concerned.

“I don’t know if he’s involved or not,” Sarandos said.

Netflix has pointed to statistics by media analysis agency Nielsen that say Google’s YouTube accounts for more viewing time on US televisions than other streaming companies, however consultants say the DOJ is prone to analyze how the deal impacts competitors in a more particular market, such as streaming platforms that cost a month-to-month subscription.

Lawmakers from each major political events have voiced considerations that the deal will cut back competitors in the streaming market. Sen. Josh Hawley (R-MO), above. Getty Images

Warner Bros. Discovery Chief Revenue and Strategy Officer Bruce Campbell also testified on Tuesday. Getty Images

Lee questioned Sarandos over the distinction between the professionally produced motion pictures and reveals on Netflix and the ad-supported content featured on YouTube.

Sarandos said at the listening to that there isn’t a publicly out there breakdown of what people watch on YouTube, however that capturing US tv viewing is a “zero-sum game.”

“If you’re watching YouTube, HBO Max, you’re not watching Netflix, you’re not watching CBS,” he said.

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