Warner Bros Discovery has agreed to a blockbuster merger with Paramount Skydance, marking one of the biggest shake-ups in the entertainment industry in years.

Paramount Skydance emerged as the winner in a months-long battle to acquire Warner Bros Discovery, after streaming giant Netflix on Thursday refused to raise its bid for the storied Hollywood studio.

Paramount raised its all-cash offer to $31 per share on Tuesday, Feb. 24 from a previous $30 per share bid and is seeking to acquire the entire company, including pay-TV networks like CNN, TBS and TNT...