NEW YORK (TheStreet) -- AT&T's (T) - Get Report $85.4 billion, $107.50 per share, merger with Time Warner (TWX) has led some to draw unfavorable comparisons to the disastrous AOL-Time Warner merger attempt of 2000.

That $164 billion merger failed in part because of difficulties reconciling two different business models -a critique that is reemerging now. Former AOL CEO Jonathan Miller believes that this time around, the deal makes business sense for both sides.

"If you're AT&T, you're in a market share game on wireless, right? It's not a growth business. It's a market share business at this point. So you need to go to something else," he said Monday on CNBC's "Squawk on the Street." "This [deal] is sticky. This has engagement."

For Time Warner, the deal works because media companies need to build scale in consumer relationships if they want to compete with larger tech companies that have massive content distribution platforms in hand, Miller argued.

"The power has been shifting to these huge platforms - Amazon (AMZN), Apple (AAPL), [Alphabet's] Google (GOOGL), Facebook (FB)- that do go direct to consumer in their business," Miller said. He served as AOL CEO from 2002-2006.

Shares of AT&T and Time Warner were both lower in Monday morning trading.

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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 TIME WARNER INC as a Buy with a ratings score of B. This is driven by a number of strengths, 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 solid stock price performance, notable return on equity, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

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

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