Greg Peters, believes Warner Bros. Discovery (NASDAQ:WBD) splitting into two is an indicator of a broader "shakeout" happening in the U.S. media landscape, where streaming and on-demand platforms are currently prevailing over traditional TV.

Warner Bros. Discovery is splitting up after just over three years, and Wall Street is cheering. The spinoff will create a slew of new questions.

Said one top executive: "It’s a deal that never had a shot and shouldn’t have been done. But they’ve also done a terrible job.”

Back in 2022 management advisor company McKinsey told Warner Bros that the media giant should combine itself with factual production specialists Discovery. The

Four years ago, David Zaslav insisted that Discovery Communications together with what was then called WarnerMedia was more than the sum of its parts. They had a “formidable” lineup of global assets, he said.

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