NEW YORK (TheStreet) --AT&T (T) - Get Report captured every headline in the media world this weekend when the mobile giant announced on Saturday that it had agreed to purchase Time Warner(TWX) for $85.4 billion. The deal sets up AT&T to be one of the largest media conglomerates in the world.

AT&T CEO Randall Stephenson joined Monday morning's "Squawk Box" on CNBC to discuss the implications of the merger. 

Stephenson commented on the belief that regulators will block the transaction as it creates an uneven playing field in the media landscape and hinders competition.

"We'll file our comments and we'll file our application for the regulatory approvals for the U.S., the EU and elsewhere. This is one where the nature of this deal is unique from anything that we have done before," Stephenson noted.

The deal is unlike anything in the company's history because it is a vertical integration, rather than a horizontal integration. Vertical integration meaning that Time Warner will still function as its own company rather than being completely absorbed by AT&T.

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"It's a vertical integration and if you think about the areas that have really been contentious over the last few years in our industry, they have been horizontal mergers where the government has been concerned about a competitor being taken out of the marketplace, this has none of that," Stephenson said.

He explained that there won't be any competitors taken out of the marketplace as a result of this deal and that the merger does not change how content is made available or distributed.

(AT&T is a holding in David Peltier's Dividend Stock Advisor.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

The team rates AT&T as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and solid stock price performance. The team feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that it evaluated.

You can view the full analysis from the report here: T

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