Cramer offers his take on AT&T stock, Bitcoin
- Cramer says he would want to own AT&T less after the recently announced merger deal with Discovery.
- On Bitcoin, Cramer said, "This is a dice roll."
- Bitcoin is down 24% over the last one week.
He also shared his opinion on the recent bout of volatility in Bitcoin caused by the tweets of Tesla CEO Elon Musk.
Cramer’s take on AT&T
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AT&T announced that it is merging its WarnerMedia business unit with Discovery creating a streaming behemoth to take on the likes of Netflix and Disney. 71% of the merge company will be owned by AT&T while the rest will be owned by Discovery shareholders.
CNBC’s Jim Cramer says he would want to own AT&T less after the Discovery deal. He questioned whether the AT&T shareholder will get a good deal post the merger. If the company was targeting a payout ratio of 40 – 43% on a cash flow of $20 billion post-merger, that will imply a dividend cut from the current $15 billion to $8 billion.
Read about the merger in more details here.
Cramer further added that AT&T CEO John Stankey came on air to say that AT&T will offer good growth, good entertainment assets and will remain a dividend play. Now the company is cutting out the entertainment and probably reducing the dividends and wondered where the touted synergies of the merger of AT&T with WarnerMedia go.
Click here to learn how to buy AT&T shares in our step-by-step guide.
Cramer’s take on Bitcoin
On the current volatility in Bitcoin, Cramer said, “This is a dice roll”. It’s like betting on a horse race. Bitcoin seems to be a good horse but if it’s price can move with a single person’s tweet, it’s not a replacement for the often maligned U.S. Dollar.
Bitcoin is down 24% over the last one week and is currently trading at around $43,500 at the time of writing.