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5 Things You Must Know Before the Market Opens Monday

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Here are five things you must know for Monday, Oct. 24:

1. -- AT&T (T) agreed to buy Time Warner (TWX) in an ambitious $85.4 billion deal that would create a powerhouse in global telecommunications, television and film. The agreement was approved by the boards of both AT&T and Time Warner.

The deal, which would be half in cash and half in stock, values Time Warner at $107 a share, a 20% premium to its $89.48 closing price on Friday. Time Warner shareholders will receive $53.75 a share in cash and $53.75 a share in AT&T stock. The total transaction value is $108.7 billion after including Time Warner's net debt.

Time Warner shares were rising 2.8% in premarket trading on Monday to $91.95, while AT&T shares declined 2.6%.

TheStreet's chief investment strategist, Jack Mohr, said AT&T is paying way too much for Time Warner.

Mohr, who co-manages Action Alerts PLUS with Jim Cramer as a charitable trust, said the merger's nearly $110 billion in total consideration is "staggering on so many financial levels" and "reeks of strategic desperation and financial destruction."