Time Warner is in early talks to shed much of Time Inc., the country’s largest magazine publisher and the foundation on which the $49 billion media company was founded, according to people involved in the negotiations.

The company is currently in talks with Meredith Corp. to put most of its magazines, including People, InStyle, and Real Simple, into a separate, publicly traded company that would also include Meredith titles like Better Homes and Gardens and Ladies’ Home Journal.

The deal being discussed is one of several options Time Warner is exploring, said the people, who could not discuss private company conversations publicly.

As part of the agreement, existing shareholders in Time Warner and Meredith would receive stakes in the new company.

A Time Warner spokesman declined to comment. News of the talks was first reported by Fortune.