Netflix has struck a landmark agreement to buy Warner Bros. Discovery’s (WBD) studios and streaming business in an all-cash deal worth about US$72 billion (A$107 billion).

WBD confirmed it has accepted Netflix’s revised offer of US$27.75 per share, switching from a previous mix of cash and stock to a fully cash transaction.

The change is designed to speed the deal toward a shareholder vote, expected by April, and to counter a hostile rival bid from Paramount Skydance.

If completed, the transaction would hand Netflix ownership of franchises such as Harry Potter, Game of Thrones and DC’s film and TV catalogue, as well as streaming service HBO Max. Including debt, the deal values the business at about US$82 billion.

Under the structure, WBD will spin off its remaining cable and news assets, including CNN, into a separate, publicly listed company to be called Discovery Global.

Alongside the revised deal, WBD released new financial disclosures showing those cable networks are facing declining revenue and earnings, even as they continue to throw off solid cash flow.

Paramount, backed by tech billionaire Larry Ellison and led by his son David Ellison (pictured), has been pressing a competing offer it says values WBD more highly. It argues its bid, pitched at roughly US$30 per share, is superior and has taken legal action to force the release of more details about the Netflix transaction.

WBD’s board, however, has questioned how Paramount would finance its proposal and says the all-cash Netflix deal offers greater certainty.

Netflix co-CEO Greg Peters said the revised offer “demonstrates our commitment to the transaction” and accelerates the path to a shareholder decision. WBD chair Samuel Di Piazza Jr said the board believes the deal best serves shareholders while preserving value through the spin-off.

Investors remain cautious. Netflix shares have fallen more than 10% since the deal was first flagged, despite the company reporting strong results: quarterly revenue up 18%, profits up nearly 30%, and more than 325 million global subscribers.