The explosion of merger and acquisition activity isn't about to burn out, according to hedge fund icon John Paulson, founder of Paulson & Co.

The global volume of M&A deals totaling $10 billion and up stood at $559.9 billion for 2014 through July 14, up 122 percent from $252.2 billion in the year-earlier period and the largest year-to-date total since 2007, Dealogic reported.

The high volume of M&A activity "will continue for the foreseeable future," Paulson said at an investment conference Wednesday, according to CNBC.

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"This is a very exciting time to be involved in merger arbitrage," he professed. Low interest rates, record stock prices and the ability to make transactions "accretive" for earnings all are sparking deals.

The big merger news Wednesday was Time Warner's rejection of an $80 billion takeover bid from 21st Century Fox.

"There's a limit to what Fox can actually pay for Time Warner," because the companies are similar in size, Paulson noted. "The question is does [Fox CEO Rupert] Murdoch come back with another bid? How high can he go?"

Hedge fund luminary Ken Griffin, CEO of Citadel, believes Fox and Time Warner will join together. "We'll get to a yes," Griffin, who owns stakes in both companies, said at the conference, MarketWatch reported.

Mario Gabelli, CEO of GAMCO Investors, apparently is convinced that Time Warner will be bought, but not necessarily by 21st Century Fox. "Time Warner ....done deal ....question. Who will buyer be, price! Google Apple," he tweeted.

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