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Jim Cramer Says AT&T Shares This 'Travesty' in Common With General Electric

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Jim Cramer has some thoughts on AT&T  (T) - Get Free Report following the announcement of the dividend cut. 

"Nobody's talking about the dividend!" Cramer exclaimed in the first sentence of his Real Money column from Monday afternoon. "Monday morning, in what many in the media are calling a transformational deal, AT&T (T) is spinning off its Time Warner media assets with Discovery (DISCA) to create an entertainment colossus, while getting $43 billion, while its shareholders will get 71% of the new company. Commentary about this merger dominated the day's trading. It was almost all positive, a terrific outcome for all."

"I am not calling it a transformational deal. I am calling it the denouement of a ridiculously stupid deal, the $85 billion acquisition of Time Warner, a deal that closed less than three years ago," he continued.

"To me, it is impossible to talk about this deal with a straight face. If you go over all of the reasons they did this deal in the first place, it's about all sorts of gobbledegook about how AT&T's strengths in direct and consumer distribution merging with the creative talent of Time Warner. As then AT&T CEO Randall Stephenson said, "We're going to bring a fresh approach to how the media and entertainment industry works for consumers, content creators and advertisers," he wrote. 

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