By Mike Bruno
Updated November 12, 2010 at 12:32 PM EST

Daily Beast editor and founder Tina Brown announced that her two-year-old website has merged with the 77-year-old news magazine Newsweek. The deal has been rumored for the past several weeks, and Brown confirmed with a note posted on Daily Beast Thursday, saying the deal “finally took place with a coffee-mug toast between all parties Tuesday evening.”

“What does this exciting new media marriage mean? It means that The Daily Beast’s animal high spirits will now be teamed with a legendary, weekly print magazine in a joint venture, named The Newsweek Daily Beast Company, owned equally by Barry Diller’s IAC and Sidney Harman, owner (and savior) of Newsweek. As for me, I shall now be in the editor-in-chief’s chair at both The Daily Beast and Newsweek…. Today, we look at print from the refreshed point of view of an expatriate who sees the old country with new eyes. That will create a great new creative energy — just as on the business side, it offers a superb dual marketing platform.”

Harmon said in a statement: “In an admittedly challenging time, this merger provides the ideal combination of established journalism authority and bright, bristling website savvy.”