Netflix, WBD Will Continue To Operate As They Are Doing Now, Ted Sarandos Tells Senate

• Senator Cory Booker said that the sale of Warner Brothers to either Netflix or Paramount would have a significant impact on 10s of 1000s of Americans that work in the entertainment industry and American consumers.
• Cory also raised concerns over President Donald Trump's purchase of $2 million in stocks and bonds in both Netflix and Warner Brothers, days after the Netflix Warner Brothers deal was announced. 
• WBD’s chief revenue and strategy officer, Bruce Campbell told the senate committee that Netflix was and remains the best opportunity for the company. 

Netflix Inc. (NFLX) co-CEO Ted Sarandos said in a testimony before the Senate on Tuesday that after its deal with Warner Bros Discovery (WBD), both companies will largely operate as they are doing at present. 

“We plan to operate those businesses largely as they are today. Netflix and Warner Brothers both have streaming services, but they are very complimentary,” Ted Sarandos said in the testimony. 

“This deal keeps one of the most iconic Hollywood studios healthy and competitive. Warner and Netflix together will create value for consumers, more opportunities for the creative community, and more American jobs,” he added. 

Netflix and WBD are facing a skeptical Senate panel Tuesday to defend their $82.7 billion media merger against concerns it will hurt competition in the streaming market. 

Critical Senators

Democratic Senator Cory Booker said that the sale of Warner Brothers to either Netflix or Paramount would have a significant impact on 10s of 1000s of Americans that work in the entertainment industry and American consumers. “I've been hearing from people throughout this industry, concerns, fears, worries, legitimate folks that don't have a political ax to grind, who are very concerned about the matters,” he added. 

He also raised concerns over President Donald Trump's purchase of $2 million in stocks and bonds in both Netflix and Warner Brothers, days after the Netflix Warner Brothers deal was announced. 

“I think it is outrageous for any senator, any house member, or for the President or Vice President, for that matter, to be trading in individual stocks when they have extraordinary insider information and influence over policies that move corporate power,” he added. 

Right Deal For WBD

WBD’s chief revenue and strategy officer, Bruce Campbell told the senate committee that Netflix was and remains the best opportunity for the company. 

The vertical merger permits Netflix to expand its nascent movie and television production capabilities with the addition of the Warner Brothers studio assets and gives WBD’s production capabilities access to Netflix's popular and consumer friendly streaming and distribution platform, he added. 

How Did Stocktwits Users React?

Retail sentiment around NFLX and WBD trended in ‘bearish’ amid ‘low’ message volume. 

One Stocktwits user wrote that ‘after watching the hearing today it doesn't look good for Netflix getting this across the finish line…’  

Shares in WBD have jumped 165.5% over the past 12 months. Meanwhile, NFLX shares have fallen 18% over the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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