Burbank, California - Streaming giant Netflix said Friday it will buy film and television studio Warner Bros. Discovery for nearly $83 billion, the entertainment industry's biggest consolidation deal this decade.

The acquisition gives Netflix access to a vast film catalog as well as the prestigious streaming service HBO Max.

Over the decades, Warner Brothers has produced film classics including Casablanca and Citizen Kane, as well as more recent blockbuster shows including The Sopranos, Game of Thrones, and the Harry Potter movies.

"Together, we can give audiences more of what they love and help define the next century of storytelling," said Ted Sarandos, co-CEO of Netflix, which has produced global hits including Stranger Things, KPop Demon Hunters, and Squid Games.

The biggest previous such deal was Disney's $71 billion acquisition of Fox in 2019.

The transaction values Warner Bros. Discovery at $27.75 per share, implying a total equity value of approximately $72.0 billion and an enterprise value – including debt – of around $82.7 billion.

Warner Bros. Discovery shares closed at $24.54 on the Nasdaq on Thursday.

"Today's announcement combines two of the greatest storytelling companies in the world," said David Zaslav, President and CEO of Warner Bros. Discovery, in the statement.

The transaction, which was unanimously approved by the boards of both companies, is to close within 12 to 18 months, they said.

"Netflix aims to dominate Hollywood," said Kathleen Brooks, research director at XTB, a trading and investment firm.

The analyst warned of a number of potential issues surrounding the deal, including fears of a Netflix monopoly once it commands such "a colossus in the TV and movie business."

Netflix, whose stock weakened as speculation on the imminent tie-up heated up in New York trading Thursday, "has never attempted a deal of this size before, which could lead to some concern about how the new mega company will be managed going forward," she said.

Brooks said she also expected political issues given that a deal of this size would need regulatory approval from anti-trust authorities in the US, and potentially elsewhere.

The parent company of HBO, CNN, and the Warner Bros film studio officially put itself up for sale in October after receiving multiple unsolicited offers, setting aside a planned split into two separate entities – one focused on streaming and studios, the other on traditional cable networks.

Warner Bros Discovery was originally targeted by Paramount – recently acquired by the billionaire tech family of Oracle founder Larry Ellison, one of the world's richest men.

According to Bloomberg, Netflix joined Paramount Skydance and Comcast, the owner of NBCUniversal, in a second round of an auction that was being negotiated throughout the Thanksgiving holiday.

Netflix, the world's largest streaming service with over 280 million subscribers globally, has been working on a bridge loan totaling tens of billions of dollars to finance the acquisition, according to sources cited by Bloomberg.

Top Hollywood players have voiced their preference to see Warner Bros not end up in the hands of Netflix, citing concerns that the streaming company largely seeks to limit theatrical releases of its film productions.

Titanic director James Cameron, speaking before Friday's announcement, called any takeover of Warner Bros by Netflix "a disaster."