Streaming giant Netflix has agreed to acquire film and television studio Warner Bros Discovery for nearly $83 billion, the two US companies announced on Friday.

The acquisition, which gives Netflix access to a vast film catalogue as well as the prestigious streaming service HBO Max, is the largest consolidation deal in the entertainment industry since Disney’s $71bn acquisition of Fox in 2019.

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

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

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 Game’.

“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.