It’s official: Netflix and Warner Bros. Discovery (WBD) have reached a definitive agreement allowing the streaming company to take possession of HBO, HBO Max, and the Warner Bros. film and television studios for $82.7 billion in enterprise value. Naturally, a deal of this magnitude could significantly reshape the streaming landscape as we know it… and as early as a year or two, to boot. The acquisition is expected to take place 12 to 18 months after WBD completes a previously announced separation of its Global Networks division in 2026.

This comes after months of speculation about WBD’s potential sale to the highest bidder, including Netflix, Paramount, and Comcast. Under the cash-and-stock deal, Netflix will maintain WBD’s current operations while absorbing its extensive content library. (This includes franchises such as Harry Potter, the DC Universe, Lord of the Rings, the Monsterverse, and over a century of other successes.) Until we know more about the what and the when of Netflix’s takeover, sources familiar with negotiations told Reuters a rumor that Netflix is toying with the idea of a combined service. And though neither company has announced any official plans to sell Netflix and HBO Max as a single subscription just yet, such a bundle could make a Premium Netflix subscription even more valuable by lowering users’ monthly costs and making it easier to access the two’s massive streaming library.

Of course, a deal of this size comes with a considerable number of cons. Paramount, for one, accused WBD’s board of favoring Netflix’s proposal and failing to form an unbiased committee to evaluate other offers. (The WBD board previously rejected a reported $60 billion bid from Paramount in October.) Then there’s the fact that, if approved by the proper government entities, the deal would give Netflix total control of one of the most influential content catalogs in modern entertainment… not exactly a happy thought for some, given the way Netflix treats its own library.

But it’s not like Netflix is rumored to be doing something other buyers wouldn’t have done themselves. Industry analysts made note of the fact that other bidders, including Paramount and Comcast, would’ve also likely used HBO Max to strengthen their streaming arms if they had secured the deal. Paramount has Paramount+, Comcast has Peacock, and neither one is a stranger to bundles. Just look at Comcast’s Stream Saver bundle, for example. Or the way Walmart+ pays for itself with Paramount+ included. Nevertheless, the bundling conversations remain purely speculative until the acquisition closes and Netflix gives us some concrete plans.

The merger also faces some intense political and regulatory scrutiny. Some lawmakers have raised concerns that the consolidation could give Netflix too much power. Some Pentagon officials have also reportedly criticized elements of the company’s content strategy, which might mean Netflix has to censor or otherwise alter its library to get the government’s approval. For now, subscribers will continue using each service separately as regulators review the deal and WBD works to get its Global Networks division in order before the expected 2026 closing.

If the acquisition does get approved, Netflix subscribers could eventually gain access to Warner Bros.’ full library, including its HBO catalog, its iconic films, and its hit TV shows. (Netflix’s co-CEO Ted Sarandos even boasted about getting everything from Harry Potter and “Friends” to classics such as “Casablanca” and “Citizen Kane” in the company’s press release announcing the deal.) Netflix expects the acquisition to boost its earnings per share by year two and projects at least $2 billion to $3 billion in annual cost savings by the third year after closing.