Netflix co-CEO Ted Sarandos faces Senate hearing over massive $72B Warner Bros takeover deal

Netflix co-CEO Ted Sarandos is set to testify on Tuesday before a Senate panel scrutinizing how the streaming giant's proposed $72 billion acquisition of Warner Bros Discovery would impact competition in the entertainment industry's streaming segment.Sarandos will testify alongside Warner Bros.' Chief Revenue Strategy Officer Bruce Campbell as the executives face questions over the competitive impact of the proposed merger before the Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy and Consumer Rights.While Congress doesn't have authority to block or delay the merger, the hearing will afford lawmakers the opportunity to hear from the companies about how it would affect competition between streaming platforms, as well as workers and consumers.If Netflix's bid for Warner Bros. Discovery succeeds, the streaming service would gain access to WBD's film and television studios, the HBO Max streaming service, as well as a content library that includes "Game of Thrones," "Harry Potter," as well as DC Comics' superheroes Batman and Superman.NETFLIX AMENDS WARNER BROS DISCOVERY DEAL TO ALL-CASH OFFERSen. Mike Lee, R-Utah, who chairs the subcommittee holding the hearing, has been critical of the deal and has questioned whether Netflix intends to move forward with it or whether it wants to inhibit competition during what may be a lengthy antitrust review.The deal is currently under review by the Department of Justice, while Paramount Skydance is pursuing a hostile bid after Warner Bros. Discovery's board rejected its bid in favor of Netflix's offer. WARNER BROS DISCOVERY BOARD UNANIMOUSLY REJECTS PARAMOUNT'S TENDER OFFER, SAYS NETFLIX DEAL SUPERIORParamount argues that it will have a more favorable path to regulatory approval, though Warner Bros. Discovery has noted the company would have to go into debt to finance the deal. Sources close to Netflix have noted that an acquisition of Warner Bros. Discovery by Paramount would also reduce the number of studios, lessening competition in the space.Netflix has cited statistics from media analysis firm Nielsen to show that Google's YouTube has a larger share of viewing time on U.S. households' TVs than other streaming services such as itself. Antitrust experts have noted that the DOJ's review may focus instead on subscription-based streaming services that are more similar to Netflix.PARAMOUNT LAUNCHES HOSTILE TAKEOVER BID OF WARNER BROS DISCOVERY, SAYS OFFER IS 'SUPERIOR' TO NETFLIX DEALLast month, the Warner Bros. Discovery board voted unanimously to reject Paramount's tender offer, with Warner Bros. Discvoery board Chair Samuel Di Piazza Jr. saying that "Paramount's latest offer remains inferior to our merger agreement with Netflix across multiple key areas.""Paramount’s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed," Di Piazza continued. "Our binding agreement with Netflix will offer superior value at greater levels of certainty, without the significant risks and costs Paramount’s offer would impose on our shareholders."Netflix revised its bid for Warner Bros. Discovery last month to an all-cash offer priced at $27.75 per share, valuing the deal at $72 billion, which amounts to an enterprise value of $82.7 billion.GET FOX BUSINESS ON THE GO BY CLICKING HEREParamount's offer amounts to an enterprise value of $108 billion and includes more assets, such as Warner Bros. Discovery's cable business.Reuters contributed to this report.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business