Netflix has agreed a $72bn (£54bn) deal to secure Warner Bros Discovery's film and TV studios and supercharge its library through rights to top franchises including Harry Potter and Game of Thrones.
It had been reported that the US streaming giant was in exclusive talks over the deal following a bidding war for the assets.
Paramount Skydance and Comcast, the ultimate owner of Sky News, were the rival suitors.
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While Netflix has agreed a $27.75 per share price with WBD, the deal is set to attract scrutiny from competition regulators, particularly in the United States.
Further drama could come in the form of a complaint by Paramount, which had previously made a bid for the whole company, surrounding the bidding process, according to CNBC.
Entertainment news provider Variety has also reported that major studios fear an institutional crisis for Hollywood unless the move is blocked.
The deal, which the companies expected to complete in 2027, does not include WBD's cable networks including CNN and TNT sports channels.
Ted Sarandos, the co-chief executive of Netflix, said: "By combining Warner Bros’ incredible library of shows and movies - from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends - with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better.
"Together, we can give audiences more of what they love and help define the next century of storytelling."
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