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Senate Antitrust Chair Flags Concerns Over Netflix’s Proposed Warner Deal

By  |  January 27, 2026

The chairman of the Senate’s antitrust subcommittee is warning that Netflix’s proposed purchase of Warner Bros.’ movie and television studios and the HBO Max streaming service could face serious regulatory hurdles, according to The Wall Street Journal.

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    Sen. Mike Lee (R., Utah), who leads the Senate Judiciary Committee’s subcommittee on antitrust, competition policy and consumer rights, sent a letter last week to Netflix co-chief executives Ted Sarandos and Greg Peters, as well as Warner Discovery Chief Executive David Zaslav. In the letter, Lee said the transaction “appears likely to raise serious antitrust issues, including the risk of substantially lessening competition in streaming markets,” per The Wall Street Journal.

    Lee also cautioned that the deal could allow the exchange of competitively sensitive information during the review process. According to The Wall Street Journal, he warned that such access could amount to a misuse of merger procedures if it occurs “under the guise of due diligence.”

    A Senate subcommittee hearing focused on the proposed Warner-Netflix transaction is scheduled for Feb. 3. The U.S. Justice Department will oversee the antitrust review. Netflix has agreed to acquire the Warner studio and streaming assets for $27.75 per share in cash, valuing the deal at about $72 billion, according to The Wall Street Journal.

    In his letter, Lee said the merger could function as what he described as a “killer non-acquisition,” a situation in which a pending transaction weakens a competitor even before it is approved. The letter did not mention Paramount, which is pursuing its own attempt to buy Warner Discovery and derail the Netflix deal, according to The Wall Street Journal.

    Read more: Paramount Extends Warner Bros Bid as Netflix Rivalry Heats Up

    The Justice Department is also examining Paramount’s hostile bid for all of Warner Discovery, including its cable networks such as CNN, TNT and Food Network. Paramount’s all-cash offer is valued at roughly $77.9 billion, per The Wall Street Journal. The company has already made a tender offer to Warner shareholders and extended its deadline to Feb. 20, while Warner’s board has urged investors to reject the proposal.

    As Paramount advances its competing bid, it has argued that a combined Netflix and HBO Max would raise competition concerns both in the United States and abroad, according to The Wall Street Journal.

    Despite the scrutiny, both Netflix and Warner have said they expect the deal to receive regulatory clearance. A Warner spokesperson said the company is “complying with all relevant laws in its dealings with Netflix,” per The Wall Street Journal. Netflix declined to comment.

    Lee had raised objections even before the proposed transaction was announced. According to The Wall Street Journal, he previously wrote on social media that such a combination “would mean the end of the Golden Age of streaming for content creators and consumers.”

    Source: The Wall Street Journal