Paramount has struck a $110bn deal to buy Warner Bros Discovery.
The deal was struck after Netflix walked away from a bidding war for the company.
Netflix had declined to match Paramount’s latest $31-per-share offer on Thursday – having offered a $27.75-per-share agreement for its studio and streaming assets.
Paramount, which is led by billionaire Larry Ellison’s son David, has deep political connections to Donald Trump’s administration.
The takeover means Paramount Skydance will own the news channels CNN and CBS News.
The deal brings together two of Hollywood’s five legacy studios, potentially reshaping the US film industry.
It means films such as Harry Potter, Superman and Barbie, as well as hit TV series such as Succession, will join Paramount’s content library.
Paramount’s titles include Top Gun and The Godfather, as well as the Paramount+ streaming service.
Regulators in California are preparing a vigorous review of the deal.
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