Netflix Inc. co-Chief Executive Officer Ted Sarandos is planning to testify in February at a US Senate committee hearing looking into his company's proposed $82.7 billion purchase of the streaming and studio operations of Warner Bros. Discovery Inc.
Bruce Campbell, Warner Bros. chief strategy officer, is also planning to appear, according to people with knowledge of the matter who asked not to be identified, discussing nonpublic information.
The testimony will give the executives a chance to build support in Washington, where the deal faces a regulatory review. It's being opposed by rival bidder Paramount Skydance Corp. and by some politicians, unions and trade groups. Paramount executives aren't expected to testify, the people said.
US Senator Mike Lee, a Republican from Utah and member of the Judiciary Committee, previously called for a hearing. He has expressed “grave doubts” about whether Netflix can win regulatory approval, calling it “a lot of market consolidation.”
The hearing is indicative of the heavy scrutiny the companies are facing in the US and Europe. CEOs aren't often called to defend their deals before Congress. The heads of Kroger Co. and Albertsons Cos. testified in support of their merger before the same Senate committee in 2022, in a deal that was ultimately blocked by the Federal Trade Commission.
The battle for Warner Bros., known for films from Casablanca to Batman, is one of the biggest media deals in years and stands to reshape the entertainment industry. Besides its famed movie and TV studios, Warner Bros. operates a stable of cable networks, including CNN and TNT.
Paramount, the owner of CBS and MTV, has been aggressively pursuing Warner Bros. since September, while streaming leader Netflix emerged as a surprise suitor, entering the chase after Warner Bros. put itself up for sale in October.
Paramount is offering $30 a share for all of Warner Bros. Discovery, or about $108.4 billion including debt. On Thursday, Paramount extended its hostile tender offer for the company.
Netflix is offering $27.75 a share for streaming and studio assets of Warner Bros., with Warner Bros. separately planning to spin off its cable TV networks to its investors.
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