Warner Bros Discovery (WBD) is undergoing a restructuring, splitting its business into two distinct units: one focused on cable and linear TV, and another dedicated to streaming. This comes as a potentially more favorable environment emerges for media companies. Citi (C) Managing Director Jason Bazinet joined Market Domination to provide insights.

Bazinet noted that media executives previously viewed mergers and acquisitions (M&A) as challenging under the current Department of Justice and Federal Trade Commission regime. However, with Donald Trump entering the White House in January and his administration expected to implement more lenient regulatory approaches, Bazinet says this "opens up a whole degree of optionality that exists for these media companies."

He elaborated on the regulatory shift, explaining, "What the Biden administration was really trying to do was to rejigger the rules such that we moved away in legal parlance from the price theory of competition —which undergirded all antitrust law in the US for the last forty or fifty years —to something that is called structuralism, which just says that big firms are bad because they're big. We're really going back to the old ways of doing things. Through that lens, everyone understands the rules of the road, and therefore that's going to open up more M&A possibilities," he told Yahoo Finance.

Regarding a specific stock pick in the media sector, Bazinet highlighted Take-Two Interactive (TTWO) as a top choice as the company prepares to release "Grand Theft Auto 6."

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This post was written by Angel Smith