Netflix wins the bidding war for Warner Bros.

Netflix is poised to purchase Warner Bros.’ studio and streaming business after being selected as the winner of the bidding war for the media giant. The two companies will now move forward into exclusive deal talks, TheWrap reports, likely including a $5 billion break-up fee in case regulators block the buyout.

Netflix reportedly offered $30 a share for the studio and its streaming assets, which include HBO Max and the rights to brands including Harry Potter and DC Comics. Netflix’s bid won out over interest from Comcast and Paramount, fresh from its own merger with Skydance, though early interest had been reported from Amazon and Apple too.

Warner Bros. Discovery announced that it was open to an acquisition in October, months after announcing plans to split the company in two: the studio and streaming business on one side, and cable on the other. While Paramount, which had three early bids rejected, had reportedly hoped to buy both halves of the company, Netflix is focused on the studio side.

Any deal will have to clear regulatory hurdles, with opposition already reported from the Department of Justice. And if it goes through, Netflix will have to adapt to a new role in Hollywood, running one of the largest and oldest studios, including the theatrical business it’s historically shied away from.