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.”

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

Warner Bros. Discovery announced the media giant will divide into two new publicly traded companies, with one consisting of its cable networks such as CNN and TNT Sports and the second consisting of its streaming and studios business,