Android MediatorLiveData observer

I'm a bit confused on why the following code doesn't work:

MutableLiveData<String> mutableTest = new MutableLiveData<>();
MediatorLiveData<String> mediatorTest = new MediatorLiveData<>();
mediatorTest.addSource(mutableTest, test -> {
    Timber.d(test);
});
mutableTest.setValue("bla!");

This code seems straightforward, however the debugger doesn't enter the callback and nothing is logged to the console...

Edit: shouldn't this work then?

    MutableLiveData<String> mutableTest = new MutableLiveData<>();
    MediatorLiveData<String> mediatorTest = new MediatorLiveData<>();
    mediatorTest.observe(loginActivity, str -> Timber.d(str));
    mediatorTest.addSource(mutableTest, str -> Timber.d(str));
    mutableTest.setValue("bla!");