Here's Why AT&T Stock Plunged Today
Shares of AT&T (NYSE: T) fell 5.8% on Tuesday as shareholders reacted to the likelihood of substantially reduced cash payouts from the media titan following the pending spinoff of its WarnerMedia business.
AT&T announced on Monday that it intends to merge its WarnerMedia assets with Discovery to create a new streaming-focused company. In return, AT&T stands to receive $43 billion, which it will use to reduce its sizable debt load.
Analysts and investors applauded that part of the plan. What they didn't like, however, was the prospect of AT&T cutting its dividend nearly in half following the spinoff.
Source Fool.com
