NEW YORK ( TheStreet) -- Newsweek and The Daily Beast have reached a deal to merge.

The Daily Beast's editor-in-chief Tina Brown will be editor-in-chief at both The Daily Beast and Newsweek.

The combination to create the Newsweek Daily Beast Co.isn't a complete surprise as the two parties have reportedly held talks in the past few months that ultimately broke down in mid-October.

The Washington Post famously sold Newsweek for just $1 in cash, along with assumed liabilities, to audio equipment magnate Sidney Harman this past summer. The Daily Beast is owned by IAC/InterActive Corp. ( IACI, whose CEO and Chairman is Barry Diller.

Brown is a bestselling author and former editor of Vanity Fair and The New Yorker. She founded The Daily Beast as an online-only venture and began publishing in October 2008.

Newsweek began in 1933.

-- Written by Michael Baron in New York.

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