Senate Antitrust Hearing Targets Netflix’s $82.7 B Warner Bros. Acquisition
The U.S. Senate Judiciary Committee held a February 3 hearing on Netflix’s revised $82.7 billion all-cash offer for Warner Bros., probing its impact on competition and consumer choice. Needham cut its Netflix price target to $120 citing $275 million in 2026 regulatory costs; Deutsche Bank raised its target to $98 on operating income pressure.
1. Revised Acquisition Offer
In late January, Netflix modified its initial $83 billion cash-and-stock bid into an $82.7 billion all-cash proposal to address investor concerns over share-price volatility and outbid Paramount Skydance’s rival offer.
2. Senate Hearing Focus
On February 3, the Senate Judiciary Committee examined how the merger could reduce content access for competitors, limit consumer choice and strengthen Netflix’s market power, with UK regulators also raising antitrust concerns.
3. Analyst Outlook
On January 21, Needham cut its price target to $120 citing approximately $275 million in expected 2026 legal and regulatory expenses that could weigh on margins, while Deutsche Bank raised its target to $98, flagging operating income pressure from the deal.
4. Regulatory Review Timeline
The Justice Department is reviewing the acquisition alongside Paramount Skydance’s bid; extended scrutiny could delay closing, increase transaction costs and affect Netflix’s free cash flow projections.