Regulators in California are preparing a vigorous review of the agreement that could reshape Hollywood.
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Paramount Skydance has emerged as the winner of the intense bidding battle for Warner Bros Discovery after rival suitor Netflix said it would not raise its takeover offer.
Streaming giant Netflix said in a statement overnight that the price required to top Paramount’s $110 billion (£82.2 billion) bid for Warner Bros would make it a deal that is “no longer financially attractive”.
The Warner Bros board said late on Thursday that the sweetened 31 dollars-a-share bid from Paramount lodged earlier this week was “superior”.
The takeover tussle ran for months, since it was put up for sale last year.
Unlike Netflix, Paramount wanted to buy all of Warner Bros’ operations, including networks such as CNN and Discovery, as well as HBO Max, DC Studios and popular titles such as Harry Potter.
David Ellison, chair and CEO of Paramount, said: "From the very beginning, our pursuit of Warner Bros Discovery has been guided by a clear purpose: to honour the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company.
"By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders – and we couldn't be more excited for what's ahead."
Warner Bros films such as Superman, Barbie, and One Battle After Another, as well as hit TV series such as The White Lotus and Succession, will join Paramount’s extensive library, including the Mission: Impossible and Star Trek franchises.
There have been worries raised by legislators and industry trade groups that more consolidation in the sector could concentrate power in the hands of a small number of players.
Regulators in California are preparing a vigorous review of the deal.
Both Democrat and Republican politicians in the US have raised concerns that a deal to acquire Warner Bros could result in higher prices and fewer choices for customers.