Jim Cramer told AT&T Inc (NYSE:T) investors who want income to sell the stock Monday via Twitter.
i don't think that people realize that ATT is going to have at least a 50% dividend cut which is why if you want income it should be sold.
— Jim Cramer (@jimcramer) May 17, 2021
What Happened: AT&T and Discovery Inc (NASDAQ:DISCA) announced a definitive agreement to combine WarnerMedia’s premium entertainment, sports and news assets with Discovery's entertainment and sports businesses to create a new global entertainment company.
AT&T shareholders will own 71% of the new company, while Discovery shareholders will own 29%.
"This agreement unites two entertainment leaders with complementary content strengths and positions the new company to be one of the leading global direct-to-consumer streaming platforms," said AT&T CEO John Stankey.
"During my many conversations with John, we always come back to the same simple and powerful strategic principle: these assets are better and more valuable together," said Discovery CEO David Zaslav.
Related Link: Why Are Discovery And AT&T Trading Higher Today?
Price Action: At last check Monday afternoon, AT&T was down 2.81% at $31.73.
DISCA was down 4.93% at $33.90 at last check Monday.
Photo courtesy of AT&T.