NEW YORK (TheStreet) -- Together AT&T  (T) and Time Warner (TWX) can help "defend the bundle" in a "world that is trying to unbundle," Liberty Media (LMCA) Chairman John Malone said on CNBC's "Squawk on the Street" on Thursday morning.

"There is definitely synergy between owning the content and having the largest distributor," he said. 

The biggest opportunity isn't driving "AT&T connectivity services disproportionately," but to make the content businesses "more profitable and more certain," Malone explained. 

Right now, people are moving away from bundles and away from traditional TV, he noted. But if you have the "largest distributor defending the bundle and defending the components that it owns in the bundle, everyone in distribution is likely to follow suit." 

For example, Time Warner's HBO won't be allowed to be streamed exclusively on AT&T, he noted. Everyone is going to want to stream HBO, and the "transfer prices which the largest distributor has with its own subsidiary will be the minimum prices."

Last month, AT&T announced that it was buying Time Warner for more than $85 billion, although the deal hasn't been approved by regulators yet. Shares of AT&T and Time Warner were lower in early afternoon trading on Thursday as investors worry that the deal won't pass under President-elect Donald Trump. 

(AT&T stock is held in the Dividend Stock Advisor portfolio. See all of the holdings with a free trial.)

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.

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