Meredith Corp. announced Monday that its National Media Group would not be combining with Time Inc.'s Lifestyle and Style & Entertainment brands, which includes People and InStyle magazines. 

Instead, Time Warner will spin off its entire Time Inc. subsidiary into a separate publicly traded company.

"There are natural synergies between our two portfolios; however, we respect Time Warner's decision and certainly remain open to continuing a dialogue on how our companies might work together on future opportunities," Meredith CEO Stephen Lacy said in a release.  

People familiar with the deal told The New York Times that it fell through because Time Warner was concerned over what would happen to Time, Sports Illustrated, Fortune and Money - products that Meredith's National Media Group was not interested in.

Negotiations over which company would own Time Inc.'s IPC Media, which publishes InStyle, Country Life and Decanter, was another sticking point, the New York Times reported. The London-based IPC also includes an advertising business and a news trade and sales distribution company.