Jim Cramer Says AT&T Will Have To Cut Its Dividend By 50%

Jim Cramer told AT&T Inc 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 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.