agreed to take over the company for US$83 billion.
in a deal that gives it one of Hollywood's most celebrated studios and creates a global entertainment powerhouse.
The deal will transform Netflix into a dominant player in Hollywood, adding a coveted library of content including the Harry Potter and Batman franchises, WBD's streaming business and HBO's premium programming.
As a result of the acquisition, WBD will continue the planned spin-off of its cable television networks, including CNN, Discovery and Turner, into a separate company before the studios and streaming business are sold to Netflix.
In the auction, which started in October and was overseen by WBD chief David Zaslav, Netflix beat out competition for the business from Paramount and Comcast.
Announcing the deal on Friday, Zaslav said: “By teaming up with Netflix, we will ensure that people around the world will continue to enjoy the world's most resonant stories for generations to come.”
As part of the agreement, each WBD shareholder will receive $23.3 in cash and $4.5 worth of Netflix shares. The transaction will give WBD an enterprise value, including debt, of US$82.7 billion. Its capital is estimated at 72 billion US dollars.
The transaction was unanimously approved by the boards of directors of Netflix and WBD, but is subject to approval by WBD shareholders and regulatory review. The deal is expected to be completed in 12 to 18 months, the companies said.
Zaslav will remain head of the new studio WBD, which will be separate from Netflix and will produce and distribute films and television shows.
The deal will give Netflix control of one of the leading film and TV production and distribution channels, giving the technology group unprecedented power in Hollywood. Netflix has pledged to continue supporting theatrical releases of Warner Bros. films.
The combination of Netflix and WBD will test regulators in the US and Europe, where both companies have extensive operations.
Those close to the deal said they were confident any regulatory hurdles could be overcome, pointing to stiff competition for global audiences not only from rival streamers but also from platforms such as YouTube.
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