Netflix will buy some of Warner Bros. Discovery’s most valuable media portfolio for nearly $83 billion in a cash-stock deal, the two companies said Friday.

The streaming giant will acquire some of WBD’s most valuable media properties, including its film and TV studio, HBO and HBO Max. WBD’s cable networks, including the news giant CNN, are to be spun off in advance of the deal. That plan was announced in June.

Combining the two companies’ vast media libraries will further Netflix’s ability to “entertain the world,” Ted Sarandos, the co-CEO of Netflix, wrote in a statement.

David Zaslav, WBD president and chief executive, said the deal will “ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

Two other companies — Comcast and Paramount Skydance — were reportedly involved in a multi-round bidding war for the media conglomerate. Representatives for those companies did not respond to requests for comment on Netflix’s deal.

The deal would require shareholder approval and regulatory approval from the Trump administration. In its regulatory filing disclosing the terms of the deal, Netflix offered a $5.8 billion breakup fee should the deal fall apart as a result of antitrust or other legal challenges. The Justice Department did not respond to a request for comment about whether it would challenge the deal.

If the Netflix-Warner Bros. deal is approved by regulators, said Mike Proulx, research director for the business research firm Forrester, “Netflix will cement itself as the Goliath of streaming services now with the combined weight of HBO Max and the content studios behind it all. This deal changes the calculus of the streaming wars, representing a seismic shift in the entertainment industry.”

Telecommunications giant AT&T bought Time Warner in 2018 in an $85 billion deal.

The Trump administration sued to block the transaction on antitrust grounds but was unsuccessful in court. The union nevertheless proved short-lived, as AT&T spun off its news and entertainment assets in 2022 and merged them with Discovery to create Warner Bros. Discovery.