Netflix will buy the film and streaming divisions of Warner Bros Discovery for a total sum of 72 billion dollars.
The information was published on Friday by BBC.
The streaming giant is set to take over Warner Bros' debts as well. Altogether, the transaction would amount to nearly 83 billion dollars, as reported by The Washington Post.
Warner Bros owns franchises such as "Harry Potter" and "Game of Thrones," as well as the HBO Max streaming service.
The takeover is intended to lead to a radical reshaping of the film and media industry in the USA, but analysts have warned that this transaction may face resistance from competition authorities.
Netflix Co-CEO Ted Sarandos stated that by combining Warner Bros' library of series and films with the streaming platform, "we can offer the audience more of what they love and contribute to shaping the next century of storytelling."
What does the HBO acquisition by Netflix mean
Tom Harrington, head of television at the British company Enders Analysis, said it is difficult to assess whether the deal will obtain regulatory approval, but if finalized, it will have a massive impact on cinematography.
Harrington mentioned that there are likely to be "significant cuts" in television and film production in the new entity resulting from the merger, which would face resistance from parts of Hollywood and relevant unions.
"HBO, the creative jewel, would be terribly exposed within Netflix, although much of its existence has survived difficult owners," he said.
For subscribers, a merger could lead to higher costs.
"Netflix would become more expensive and, even if HBO Max were to be closed or become nonessential, the increased penetration of Netflix into more households would likely result in a total subscription revenue increase."
T.D.