NEW YORK (TheStreet) --AT&T (T) - Get Reportcaptivated the entire media world when it announced this past weekend that it had purchased Time Warner (TWX) for $85.4 billion. Since then, the deal has triggered a significant amount of debate surrounding the benefits of the acquisition and if it will pass regulation.

"I give it a 60% chance it passes and I think there are good arguments for why it should pass," Recode's Managing Editor Ed Lee said during Monday morning's "Squawk Box" on CNBC.

Lee believes the arguments for allowing the deal to pass are that it does not negatively impact competition, nor does it limit consumer choice.

"At the same time by that very argument, the deal itself doesn't make sense to me from a business/economic perspective. A distributor owning content does not boost the value of either entity," he added.

For AT&T to want to differentiate its services does make sense, however, through this deal, Lee believes that isn't necessarily accomplished.

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"By owning something like Time Warner it's not going to help you because HBO, CNN, Turner Networks, all that stuff has to be as widely distributed as possible which means you can't cut out other distributors," he explained.

Shares of AT&T were lower in mid-morning trading on Monday.

(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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