The U.S. Senate Judiciary Committee’s antitrust subcommittee announced on January 28 2026 that it will hold a hearing on February 3 2026 to review the proposed merger between Netflix and Warner Bros. Discovery (WBD). The hearing is part of a broader regulatory review being conducted by the Department of Justice (DOJ) and the Federal Trade Commission (FTC).
The merger, which was announced in December 2025, values WBD’s studios and streaming assets at an enterprise value of roughly $82.7 billion, or $27.75 per share in an all‑cash transaction. The deal is expected to close within 12 to 18 months after the December 4 signing. Paramount Skydance has entered the fray with a hostile all‑cash bid for the entire WBD company valued at about $108.4 billion, adding a competitive dimension that could influence the merger’s outcome.
Senator Mike Lee, chairman of the subcommittee, has expressed concerns that the merger could create a “killer non‑acquisition” scenario, where Netflix might use the review process to gain access to sensitive information and weaken a competitor. The DOJ has issued a second request for information to both companies, extending the review period and signaling heightened scrutiny of horizontal consolidation in streaming, vertical foreclosure risks, and potential impacts on labor and suppliers.
Netflix’s co‑CEO Ted Sarandos said the transaction would “offer audiences and creators more choice, value and opportunity” and that the combined company would be “pro‑consumer, pro‑innovation, pro‑creator and pro‑growth.” Co‑CEO Greg Peters echoed this sentiment, noting that the deal would expand Netflix’s content library and strengthen its position in both home entertainment and theatrical releases. The executives emphasized that the merger would allow Netflix to scale its operations and compete more effectively against rivals such as Disney, Amazon and Paramount.
The hearing and the ongoing DOJ and FTC investigations underscore the regulatory risks that could delay or derail the transaction. Investors are closely monitoring the outcome, as a negative ruling could affect the companies’ strategic plans and shareholder value. The merger’s completion hinges on resolving antitrust concerns, satisfying the DOJ’s information requests, and navigating the competing Paramount bid. The outcome will shape the competitive landscape of the streaming industry and influence the strategic direction of both Netflix and Warner Bros. Discovery.
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