Netflix will acquire parts of Warner Bros. Discovery for $72 billion (€61.8 billion), the streaming giant announced Friday.

If regulators approve, the merger would unite two of the biggest names in entertainment, Netflix and Warner Bros., the studio behind "Harry Potter", "Game of Thrones" and the DC films.

The combined company would control a vast library of movies and shows, from Stranger Things and Squid Game to Warner’s century-old catalog.

Not included in the deal are networks like CNN and Discovery.

What does the deal mean for Netflix and Warner Bros.?

Netflix will acquire Warner Bros.' film and television studios, HBO Max and HBO.

"Our mission has always been to entertain the world," Ted Sarandos, co-chief executive of Netflix, said in a joint statement with Warner Bros. Discovery.

Sarandos said the deal would combine Warner Bros.' "incredible library" of films and TV shows with Netflix's signature productions.

Warner Bros. has produced Hollywood classics such as "Casablanca" and "Citizen Kane" as well as modern blockbuster movie series "Harry Potter" and smash TV hits like "Friends," "The Sopranos" and "Game of Thrones."

Netflix, on the other hand, is responsible for shows like "Stranger Things" and "Squid Game" and the film "Kpop Demon Hunters."

"Together, we can give audiences more of what they love and help define the next century of storytelling," Sarandos said. 

In the joint statement, Warner Bros. Discovery President and CEO David Zaslav said Friday's announcement "combines two of the greatest storytelling companies in the world."

What else do we know about the deal between Netflix and Warner Bros.?

The cash and stock transaction is valued at $27.75 per Warner Bros. share, with a total enterprise value of approximately $82.7 billion and equity value of $72 billion.

The deal was unanimously approved by both companies' boards. It is expected to be sealed within a year to 18 months, the companies said.

What has been the reaction to the deal?

The deal, which means the world's largest streaming service would own one of its major rivals, is likely to be closely scrutinised in the US and in Europe.

Paramount, which was outbid by Netflix, has raised concerns about the sale process and claims Netflix received favorable treatment.

Before the deal was announced, some in the US Congress had said such a consolidation would harm consumers and Hollywood.

Cinema United, a trade organization that represents movie theaters across the US, said it poses an "unprecedented threat" to cinemas around the world. 

The former CEO of WarnerMedia, Jason Kilar, said he could not envisage "a more effective way to reduce competition in Hollywood."

The director of "Titanic," James Cameron, said ahead of the announcement that any Netflix takeover of Warner Bros. would be a "disaster" for movie theaters, citing concerns that the streaming giant wants to limit cinema releases of its film productions.

Kathleen Brooks, a researcher at trading and investment firm XTB, told the AFP news agency that Netflix is aiming to "dominate Hollywood." She warned that the deal raises a number of potential issues, namely a Netflix monopoly on the TV and movie business.

Brooks also pointed out that such a huge deal will need regulatory approval from US antitrust authorities.

Editor's note: This story has been updated to reflect the deal’s equity value of $72 billion and to clarify that CNN and Discovery are not included.

Edited by: Sean Sinico