NEW YORK (TheStreet) --Last week AT&T (T) announced its proposed $85.4 billion acquisition of Time Warner (TWX). Since the deal was announced, questions have surfaced over whether or not regulators will approve the transaction.
RLJ Cos. founder and chairman Bob Johnson weighed in on the decision the regulators will have to make during Wednesday morning's "Squawk Box" on CNBC.
"I don't know exactly what the regulators will say but I do know that the regulators will look at this and ask if the public is better served by having more competition," Johnson said.
Competition for advertising, and not being tied to a bundle of services customers don't watch, he noted.
"They will also probably say to AT&T you can't say that we're going to charge you this much for HBO, but for Showtime we will charge you this much, and I think AT&T would say that's great," Johnson added.
Shares of AT&T were lower in mid-morning trading on Wednesday.
(AT&T is a holding in David Peltier's Dividend Stock Advisor.)
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.