The streaming giant had emerged as the top bidder for Warner Bros ahead of rivals Comcast and Paramount Skydance after a drawn-out battle.

Warner Bros owns franchises including Harry Potter and Game of Thrones, and the streaming service HBO Max.

The takeover is set to lead to a radical reshaping of the US film and media industry, but analysts have warned that it could face resistance from competition authorities.

Netflix co-chief executive Ted Sarandos said that by combining the Warner Bros library of show and movies with the streaming platform, "we can give audiences more of what they love and help define the next century of storytelling".

Netflix's other co-chief executive, Greg Peters, said the deal meant Netflix could introduce Warner Bros products to a broader audience.

The cash and stock deal is worth $27.75 per Warner Bros share, with a total enterprise value - which includes the company's debts and the value of its shares -of about $82.7bn.

David Zaslav, president and chief executive of Warner Bros, said the announcement "combines two of the greatest storytelling companies in the world".

"By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come," he said.

Both companies said the deal would enable Netflix to expand its studio production capacity and increase its investment in original content.

The sale was unanimously approved by the boards of directors of both Netflix and Warner Bros.

In the agreement, Netflix will complete the takeover after Warner Bros finalises its previously announced plans to separate its streaming and studios division from its global networks division into two publicly traded companies.

Its global networks division includes its cable channels such as CNN, as well as its sports brands and free-to-air channels in Europe.

That separation is expected to be completed between July and September next year.

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