Warner Bros will acquire the new studio from Liongate Entertainment, where it was founded in 1996, in a deal valued at $3.3bn.
The acquisition of Liongate, which has been working on film projects for Warner Bros since the 1990s, will allow the company to focus on its core properties including films such as The Amazing Spider-Man, the live-action adaptation of Harry Potter and the Harry Potter film series, and a slate of animated films.
Liongate was formed by Lionsgate parent Warner Bros and Disney, with the aim of creating a “digital cinema experience”, which includes video games, music and animation.
The move comes after years of negotiations between Lionsgate and Warner Bros, which saw the deal announced in October 2017.
The transaction will allow Warner Bros. to focus its studios’ resources on its properties, including The Amazing Red Planet, which was released in 2018 and is one of the biggest hits of the year.