On November 26, 2017, media company Meredith (MDP  ) said it would purchase Time Inc. (TIME  ), the famed multinational mass media company. The boards of both companies unanimously approved the all-cash deal, valued at nearly $3 billion.

Time Inc. was founded in 1923. For nearly a century, the company has been known primarily for its publication of the weekly magazine Time. In its heyday, Time had millions of subscribers and a global reach. And in 1989, after it merged with Warner Communications to form Time Warner (TWX  ), it became for a time the largest media company in the U.S.

But in 2014, Time Inc., the magazine publishing division, split off into its own independent company, putting forth a number of well-known titles, including People, Sports Illustrated, Fortune, and Entertainment Weekly. Time magazine continues to be relevant today, particularly after its coverage of Trump in 2016. But Time Inc. has struggled ever since the split from Time Warner. The internet has taken its toll, with subscriptions and advertising income steadily declining, even as its "Person of the Year" and "Sexiest Man Alive" features continue to capture the nation's attention.

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Despite Time Inc.'s problems, Meredith President Tom Harty thinks this deal will be "transformative," and believes it will open untapped potential at Time Inc. to serve "consumers and advertisers alike" by combining their "strong local television business...with trusted, premium multiplatform content creation." Meredith CEO Stephen Lacy has said that the new company will focus on digital media, enhancing its ability to reach millenials.

Des Moines-based Meredith already produces multiple prominent, family-friendly magazines, including Parents, Shape, and Better Home & Gardens. Meredith has long been rumored to be interested in acquiring Time Inc.'s publications. Indeed, Meredith was so eager to make the purchase that it took on nearly $3.6 billion in debt from a variety of lenders to make the acquisition.

Once the deal is complete, Meredith plans to sell about $650 million worth of the combined company to a business owned by Charles and David Koch, the famously politically active owners of Koch Industries, the second-largest privately-owned company in the U.S. The Kochs have claimed that they are merely passive investors, and will have no role in the editorial content of Time publications. Others have expressed concerns that they might use the publishing platform to push their conservative agenda.

Shares of Meredith and Time both soared after the announcement, with Meredith jumping over 12% to reach a 52-week high of $70.70, and Time Inc.'s stock climbed 9%.