NEW YORK (TheStreet) -- Famed investor Mario Gabelli has shares of both AT&T (T) - Get Report and Time Warner (TWX) but is not entirely confident that their $85.4 billion merger will survive review from U.S. regulators.

The GAMCO Investors CEO said the deal has a 50/50 shot at being approved in a Wednesday appearance on CNBC's "Halftime Report."

"The FCC is going to change it," Gabelli said. "The Department of Justice is going to change it."

If the deal does go through, Gabelli thinks the merged company will take a global approach to content distribution.

"I think we're looking at the United States as a little island of 330 million people. You've got seven billion additional people in the world that they're not going after," he said. "Wait until they start doing that. We need to create size and scale on a global basis."

Shares of AT&T were slightly lower in early afternoon trading Wednesday, while shares of Time Warner were higher.

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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. TheStreet Ratings has this to say about the recommendation:

We rate AT&T INC as a Buy with a ratings score of B. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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

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