Wall Street analysts are bullish the move could pave the way for M&A and bring the industry a step closer to rationalization

Hollywood conglomerate Warner Bros. Discovery on Monday made it official, unveiling plans to separate the company, in a tax-free transaction, into two publicly traded companies, “enabling each to maximize its potential.”

The film and television giant will turn its cable networks, including CNN and TNT, into one company and its streaming and studios business into another.