Piczo to join forces with fellow teen site Stardoll

It's no surprise that in the current recession, smaller social networks are merging to have better access to advertisers and a broader reach.

Representatives from Piczo, a social network geared toward teens, have confirmed that the site will be rolling up into Stardoll, another social site that focuses on virtual doll accessorizing.

They'll be combining with a third site called Paperdoll Heaven to form what's called the "Stardoll Network." Then, presumably, they will have access to a stronger lineup of common advertisers.

Financial terms have not been disclosed. But to put things into perspective, Piczo says it has 30 million registered members and 10 million monthly unique visitors. Stardoll is slightly smaller. But with the biggest social sites now numbering well over 100 million members, there's no surprise that smaller players are consolidating in this difficult (to say the least) financial climate.

What's interesting is that Piczo used to be one to watch: before it was overtaken by MySpace, it was the No. 1 social site for teens in the U.K. But about a year ago, it began to hit visible trouble stemming from tepid traffic and rumored layoffs.

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