Mitch Zacks is the president of Zacks Investment Management, which manages $5 billion on behalf of high net-worth individuals. The company owns approximately $60 million worth of AT&T stock T -0.03% .
Zacks tells Fortune that he is skeptical of many of AT&T’s claims about the rationale for its purchase of Time Warner TWX -0.94% . In particular, he says it is highly unlikely that the telecom company will be able to find enough synergies to justify the premium it is paying.
“Essentially, what is happening is AT&T is paying more for Time Warner than any other entity is willing to pay,” says Zacks. “It’s paying more than even Apple was willing to pay, and it’s paying a lot more than what the market is saying it’s worth. So by definition it’s overpaying.”