Congressional Oversight in the Spotlight
Legislators from both chambers of Congress are exploring the possibility of holding hearings regarding the ongoing competition between Netflix and Paramount for control of Warner Bros. Discovery. However, any legislative measures that could potentially halt or modify the acquisition are widely considered improbable in the near term.
As the contest for WBD grows increasingly contentious, congressional oversight of a merger expected to take over a year to finalize is already under consideration. This process could significantly reshape the American entertainment landscape. Senator Cory Booker, a Democrat from New Jersey who leads the Senate Judiciary Committee's antitrust subcommittee, indicated that his staff and those of Republican Chair Mike Lee from Utah are developing plans for a potential hearing.
On the House side, Representative Scott Fitzgerald, a Wisconsin Republican involved in antitrust matters, confirmed to Semafor that parallel discussions are occurring with Judiciary Chair Jim Jordan, an Ohio Republican. These talks include evaluating potential witnesses, with a decision anticipated shortly.
Legislative Hurdles Remain High
Should hearings proceed, they would likely attract considerable attention and become platforms for the political debates that often complicate major corporate transactions. To exert a legally binding influence on the WBD situation, however, new legislation would be required—either specifically addressing this sale or broadly updating the government's approach to certain mergers. Ten lawmakers from both parties informed Semafor that passing such legislation before 2027 is highly unlikely.
"We need it; we need it badly," stated Senator Josh Hawley, a Missouri Republican, referring to updated antitrust laws. He expressed doubt about its passage in the current Congress, adding, "It's the biggest players, the biggest incumbent players across industry, but particularly the tech industry, [that] are extremely hostile to any update to our anti-choice laws because they're a bunch of monopolists."
Highlighting the limited bipartisan appetite for new laws next year, some progressive voices argue that additional legislation is unnecessary. They contend that the offers from both Netflix and Paramount already breach existing antitrust statutes. These critics are pursuing alternative oversight methods, such as urging Attorney General Pam Bondi to step aside due to potential conflicts of interest and requesting Treasury Secretary Scott Bessent to examine the role of foreign investors in the WBD contest.
"We just need an independent investigation and a decision based on the law, and not on who offered Donald Trump the biggest contribution to his gold-plated ballroom," Senator Elizabeth Warren, a Massachusetts Democrat who spearheaded these requests, told Semafor. "I'd be glad to update our competition policies," Warren added. "But we don't need one for this merger."
Representative Pramila Jayapal, a Washington Democrat, proposed an informal hearing where Democrats could summon former Federal Trade Commission officials to provide testimony. She concurred that "it is an enforcement issue. We have laws—they're just not being enforced."
Political Dynamics and Deal Complexities
The President, who has stated he will personally review the merger, has long-standing connections to the Ellison family, whose financial resources support much of Paramount's bid. Nonetheless, it remains uncertain whether Trump would actively oppose Netflix, whose CEO has maintained a close relationship with him while preparing an $83 billion offer.
Trump's son-in-law, Jared Kushner, was involved in financing Paramount's $108 billion hostile bid for WBD before withdrawing last week amid scrutiny over his participation.
Senator Adam Schiff, a California Democrat, expressed having "a lot of questions" about the WBD agreement. These include concerns about "any effort by the president to leverage these merger proposals to change the content of a news organization"—a reference to Trump's desire for CNN to be sold as part of any takeover—and "the impact on prices for consumers."
A White House official informed Semafor that Trump "maintains good relationships with both bidders for Warner Brothers, and is neutral in this bidding war."
Path Forward and Political Realities
Several legislators discussing hearings suggested that legislation might eventually emerge. This would be a formidable challenge during a midterm election year; the last congressional attempt to revise antitrust laws before the 2022 midterms, which focused on major technology firms, was unsuccessful.
Fitzgerald noted that "we're moving in that direction." Booker said he and Lee agree "that we have gotten to a point of corporate concentration in our country like never seen before, and something needs to be done."
However, no Democrat expressed optimism about swift legislative action in the Republican-controlled capital. "Antitrust legislation is extraordinarily complex and biblical," remarked Senator Richard Blumenthal, a Connecticut Democrat and senior Judiciary Committee member. "And we are in an era where there is a lot of bipartisan cooperation on antitrust issues, but still difficulty in achieving anything specific in the immediate future."
Public opinion surveys consistently show that a majority of voters across party lines desire stronger government action against corporate power. Yet Jayapal observed that "a lot of the antitrust" advocates within the GOP are "no longer here ... which is too bad." She specifically mentioned former Representative Ken Buck, a Colorado Republican who collaborated with Democrats on this issue and authored a book on Big Tech before resigning last year.
Representative Laura Friedman, a California Democrat and former film producer, told Semafor she is actively negotiating with Republicans on a proposed tax incentive for entertainment companies, which could act as a "counterweight" to industry consolidation. "It's hard to imagine, in this kind of bipartisan environment, that we're going to do things like work on antitrust legislation," Friedman said. "I do think that we can make progress on the film tax credit."
Divergent Views Within the GOP
Another obstacle to potential legislation is the evident division among Republicans over whether Congress should attempt to influence the WBD sale. "I let the antitrust people sort out any concerns and I let the free market do what the free market does best," stated Senator Thom Tillis, a North Carolina Republican.
In today's highly polarized Congress, it is uncommon to see members from both parties addressing the ascent of streaming services in comparable and largely cooperative manners. Fitzgerald compared lawmakers' merger concerns to issues frequently raised about the decades-old statute regulating professional sports leagues' broadcast rights.
"I don't think anyone imagined where streaming would go," Fitzgerald said. "The Sports Broadcast Act ... was written in '61, so it's completely antiquated." "Same thing," he added. "I mean, people are just out of their minds trying to find their hometown football team."
Nevertheless, achieving bipartisan consensus on antitrust legislation—which would inevitably attract intense lobbying and become a political spectacle—remains a distant prospect. Consequently, Washington may have to content itself with hearings. Even these might not materialize if Netflix continues to appear favored over Paramount, as is currently the case, without more direct intervention from Trump.
