Netflix co-CEO Ted Sarandos defended the company's merger deal with Warner Bros. Discovery before a Senate subcommittee, while other news highlighted developments in the music and film industries, and a potential shakeup in the federal workforce. Sarandos argued the merger wouldn't harm consumers, but faced scrutiny over past price increases, according to Fortune. Meanwhile, Neon acquired the worldwide rights to the film "Clarissa," and Nettwerk Music Group announced a $300 million buyout, Variety reported. A new rule from the Office of Personnel Management could allow for easier firing of federal employees, Fortune also noted.
Speaking before the Senate Judiciary Committee's subcommittee on antitrust, competition policy, and consumer rights, Sarandos rejected claims that the merger would lead to concentration in the streaming industry, Fortune reported. However, Senator Amy Klobuchar pointed out Netflix had raised prices last year, increasing its lowest-tier plan with ads by $1 per month and its higher tiers by $2.50 and $2, respectively. Klobuchar expressed concern about potential impacts if Netflix acquired Warner Bros.
In the film industry, Neon secured the rights to "Clarissa," a modern adaptation of "Mrs. Dalloway" starring Sophie Okonedo, with a planned theatrical release in the U.S., Variety reported. Senators Schiff and Friedman are advocating for job security in Hollywood, urging Netflix and Paramount to commit to preserving the workforce if they acquire Warner Bros., according to Variety.
The music industry saw Nettwerk Music Group announce a management buyout from its existing investors, supported by Create Music Group, with the transaction expected to close this month, Variety reported. Create Capital will invest over $300 million as part of the agreement, according to the same source.
In other news, a new rule from the Office of Personnel Management could allow President Trump to more easily fire federal employees, sparking concerns about politicization of the civil service, Fortune reported. Additionally, PayPal Holdings appointed Enrique Lores as CEO, effective March 1, succeeding Alex Chriss, according to Fortune.
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