High times magazine and paper magazine will merge.
The Fairfax Media group will merge with a publishing group, Fairfax Media Australia.
The newspaper group will be called Fairfax Media Group Limited and the publishing group will become Fairfax Media Publishing Group Limited.
The merging group will have a combined annual turnover of about $1.2 billion.
The merged entity will be able to publish more than 400 titles.
The new company will publish an online newspaper, High Times, as well as a print magazine and a mobile app, Fairfax Times.
The newspapers will be owned by Fairfax Media, which has more than 5 million customers.
The companies were founded in 1998.
The papers will be in the hands of Fairfax Media.