Pakistan, Dec. 6 -- Netflix agreed to buy Warner Bros Discovery's studios and streaming unit for $72 billion. The deal gives Netflix control of HBO Max, iconic film franchises, and content libraries. Shares of Warner Bros Discovery rose 3.2%, while Netflix fell slightly.

The acquisition followed a bidding war with Paramount and Comcast, with Netflix offering $27.75 per share, including cash and stock. Warner Bros Discovery will first spin off its global networks unit before the deal closes. Netflix expects annual cost savings of $2-3 billion within three years.

The deal provides Netflix access to major franchises, including Harry Potter, Game of Thrones, and DC superheroes. Netflix Co-CEO Ted Sarandos said the acquisition will help the ...