NEW YORK (TheStreet) --Last week AT&T (T) - Get Reportcaptured the attention of the media world when it announced that it would be purchasing Time Warner (TXW) for $85.4 billion. Since, skepticism has arisen over whether or not regulators will give the nod to allow the deal to pass, and how the two companies will co-exist.

"I think it's a good idea. It's a good idea for both sides. I think for Time Warner it gives them sort of a new lease on life in terms of being able to have a much better relationship with the consumer," Activate CEO Michael Wolf said during Monday morning's "Squawk Box" on CNBC.

Activate is the leading strategy and technology consulting firm for media, entertainment, and information businesses. It works with executives to drive growth and assist companies in the tech and media landscape. The major benefit of this deal for AT&T is that it can now take on the cable industry.

"DirecTV is the largest distributor of paid TV, but [AT&T] now can take on everybody else. A $35 package is very reasonable," Wolf said.

However, he remains skeptical that the price stays at $35, because of the consumer reluctance to want a skinny bundle.

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"Still, it gives them the ability to compete more broadly," Wolf noted.

Shares of AT&T and Time Warner were higher in midday trading on Monday.

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

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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