At a Senate Judiciary subcommittee hearing on February 3, 2026, Netflix co-CEO Ted Sarandos and Warner Bros. Discovery chief revenue officer Bruce Campbell responded to questions on the streamer’s proposed all-cash acquisition of Warner Bros. Discovery valued at $82.7 billion. Sarandos emphasized that the combined entity would operate Warner Bros. as a standalone studio, preserve existing jobs and expand content investment. He projected that consumers would benefit from more titles at lower combined subscription costs, citing Netflix’s 325 million global subscribers and Warner Bros.’ library of over 10,000 hours of film and television content. Senators probed potential price increases and market concentration, with chair Mike Lee warning the merger could entrench Netflix’s market power by removing HBO Max as an independent competitor.

Republican senators Josh Hawley and Eric Schmitt raised cultural and competition critiques, accusing Netflix of ideological bias in children’s programming and of promoting ‘DEI and wokeness.’ Sarandos countered that Netflix offers a broad range of content without political agenda. Senator Cory Booker, top Democrat on the panel, questioned the fairness of the review under the current administration and expressed frustration over Paramount Skydance CEO David Ellison’s absence despite his company’s competing bid. Booker noted that state attorneys general could join the Justice Department and FTC in challenging the transaction if competition harms prove substantial.

Netflix expects a multi-jurisdictional review process extending into late 2026, as regulators in the European Union, United Kingdom and Canada evaluate global competition impacts. Domestic approval will hinge on the Justice Department’s antitrust division and the Federal Trade Commission’s assessment of service pricing, content diversity and labor effects. Investors will monitor quarterly subscriber growth—Netflix reported 18% year-over-year revenue growth to $45 billion in 2025—and margin expansion forecasts of 200 basis points in 2026. Any delays or divestiture requirements could pressure Netflix’s stock valuation, which trades at roughly 26 times forward earnings, compared with digital peers in a crowded streaming landscape.