"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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