Netflix Co-CEO Ted Sarandos Defends Warner Bros. Discovery Deal, Says YouTube Is More Than ‘Cat Videos’ — Ross Gerber Agrees

On Tuesday, Netflix Inc. (NASDAQ:NFLX) co-CEO Ted Sarandos argued before U.S. senators that YouTube has become television in every meaningful sense, a defense of the company’s Warner Bros. Discovery (NASDAQ:WBD) acquisition.

Testifying before the U.S. Senate Judiciary Committee, Sarandos pushed back against concerns that Netflix’s proposed acquisition of Warner Bros. Discovery would create a monopoly, arguing that regulators are misreading the modern media landscape.

“YouTube is not just cat videos anymore,” Sarandos said, describing YouTube, a subsidiary of Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, as the largest television platform by viewing time.

Don’t Miss:

He cited the platform’s NFL football rights, exclusive Oscars deal, partnerships with the BBC and the growing scale of creator-led productions that now rival traditional Hollywood budgets.

Sarandos also noted that roughly half of YouTube viewing now happens on television screens in living rooms, a shift that challenges the perception of YouTube as primarily a mobile-first service.

Sarandos told lawmakers that Netflix accounts for about 9% of total U.S. TV viewing time and would reach roughly 10% even after combining with Warner Bros. Discovery.

He said when they are talking about competing for viewers’ attention, ad dollars and subscription dollars, “it’s all the same pool,” Sarandos said, framing the deal as necessary to compete for time and attention rather than dominance.

Trending: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

The comments gained traction after Yahoo Finance shared a clip of the hearing on social media. Ross Gerber, co-founder of investment firm Gerber Kawasaki, reposted the video and wrote, “Really well said.”

Really well said. $nflx $goog

See Also: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen

Netflix last month shifted to an all-cash offer valued at $82.7 billion for Warner Bros. Discovery’s studio and streaming businesses, winning unanimous board approval and sidelining rival Paramount.