Netflix co-CEO Ted Sarandos will testify before a Senate committee. The testimony concerns the proposed $83 billion acquisition of Warner Bros. Discovery's studios and streaming business.
Lawmakers raised antitrust concerns regarding the deal. These include potential harm to competition and reduced compensation for creators. The acquisition may also negatively impact theatrical exhibitors.
Netflix announced the all-cash offer for the Warner Bros. assets during its recent fourth-quarter earnings report.
Increased regulatory scrutiny coincides with Netflix forecasting revenue growth deceleration for 2026. The company exceeded financial objectives in 2025. However, Netflix guided for 11%-13% organic sales growth in 2026. This guidance raises concerns about future growth trajectory, especially in the mature U.S. market.
To fund the all-cash Warner Bros. deal, Netflix will pause its share buyback program.