Netflix Co-CEO Ted Sarandos testified before the U.S. Senate Judiciary Committee on February 4. He defended the company's proposed $82.7 billion all-cash acquisition of Warner Bros. Discovery's studio and streaming assets.
Sarandos countered potential monopoly concerns by reframing the competitive landscape. He argued that YouTube, an Alphabet subsidiary, is Netflix's most formidable competitor, not traditional studios.
Sarandos highlighted that YouTube is the largest platform by viewing time. The platform is also increasingly watched on television screens.
The proposed deal grants Netflix control over major assets, including HBO Max. It also secures valuable franchises like 'Harry Potter' and DC Comics.
The testimony is a critical step in navigating the antitrust scrutiny surrounding the merger. The acquisition would significantly reshape the streaming and entertainment industries. Netflix shares showed a slight increase in pre-market trading.