Street View: Warner Bros Discovery business rejig a precursor for more

** Warner Bros Discovery WBD said it would split into two publicly traded entities, separating its studios and streaming operations from its declining cable TV networks, as the company aims to strengthen its position in the streaming era

** Median PT of 27 brokerages covering stock is $13, with average "buy" rating - LSEG data

MORE ON THE WAY?

** TD Cowen ("buy," PT: $14) says "...these splits probably prefigure some industry re-consolidation down the line, almost certainly on the linear networks side (private equity seems a likely candidate to us), but also potentially on the studio/streaming side"

** Bernstein ("market perform," PT: $11) says "this is only Step 1 in the process, as the industry continues to restructure in response to the rapid shift of eyeballs to streaming"

** Standalone WBD Global Networks will still face same secular headwinds, while standalone WBD Streaming & Studios (S&S), despite its impressive portfolio of high-quality IP, is subscale, brokerage adds

** Morningstar (fair value: $20) says while Global Networks will continue to shrink, valuable assets such as U.S. sports rights, CNN and Discovery streaming platforms and digital properties such as Bleacher Report can help soften impact of its decline in linear television

** Morgan Stanley ("equal-weight," PT: $10) says while transaction is expected to take a year to finalize, according to announcement, linear networks will likely continue facing revenue pressure