On Sunday evening, Meredith Corporation, publisher of Better Homes & Gardens, Parents, and the hot new magazine Magnolia Journal, announced an agreement to purchase Time Inc.

Aside from Time itself, the company’s stable also includes People, Sports Illustrated, InStyle, Fortune, among others. The Wall Street Journal dubbed the move “a significant bet on the future of the magazine industry as media companies try to find their focus in an increasingly digital world.”

Meredith has agreed to pay $1.85 billion in cash, which includes $650M in private equity from Koch Equity Development. Including debt, the deal values Time Inc. at $2.8 billion.

The partnership with the Koch brothers, known as major power players in the Republican Party and supporters of conservative causes, raised questions about whether the Kochs were looking to secure influence via prominent magazines, such as Time and Fortune.

To assuage concerns, the companies made it clear that Koch Equity Development will be a passive, silent minority investor that would not influence Meredith’s operations, including management or editorial decisions. Additionally, KED will not have a seat on the Meredith Board of Directors, observer rights, or the ability to be a non-voting attendee at board meetings.

Meredith anticipates cost savings of $400M to $500M in the first two years of operation through the elimination of overlap between the two companies. This is usually found in the back-office operations, such as accounting, human resources, and production.

Additionally, Meredith will likely transfer non-client facing/support roles to Des Moines, where real estate and cost-of-living is significantly lower than in New York, resulting in additional savings.

This deal has benefits for both companies—and ostensibly, advertisers. Time Inc. gains a parent company that understands its legacy business, which despite ongoing declines, still accounts for two-thirds of its revenue.

When combined, the new Meredith will have a readership of 135 million people and a paid circulation of nearly 60 million.

The deal will expand Meredith’s digital reach, creating a combined digital business with 170 million monthly unique visitors in the U.S. and more than 10 billion annual video views. Additionally, Meredith acquires The Foundry, Time Inc.’s content development, creation, and distribution facilities, further enhancing Meredith’s offerings in this competitive arena.

Long-term, it’s anticipated Meredith will bundle and sell the male-focused Time Inc. publications, including Sports Illustrated, Fortune, Time and Money. These brands do not align with the predominately female audience currently reached by the Meredith brands and would help eliminate some of the debt accrued with the purchase.

The acquisition is expected to be completed in the first quarter of 2018, subject to conditions and regulatory approvals. Until then, it remains business as usual, and they remain separate companies.