NEW YORK (TheStreet) --Last month AT&T (T) announced its intention to acquire Time Warner (TWX) for the price of $85.4 billion. The deal is pending as regulators still need to give it the go ahead. GAMCO Investment CEO Mario Gabelli gives it a 70% chance of being approved.

"With [Tom] Wheeler (exiting chairman of the FCC) gone I don't think the FCC will look into this one, or they'll spinoff the TV stations or some ground stations. I think I've gone from 40% probability to 70%," Gabelli said on CNBC's "Squawk Box" this morning.

"The free market system should allow CEOs to go in and make their bets," he continued.

He noted the support AT&T CEO Randall Stephenson has received from his board of directors, and thinks regardless whether or not the deal is ultimately approved the company will be "fine."

"From my point of view, I have no problem in making that bet," Gabelli stated.

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

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