Joanna Shields, chief executive of Bebo, has been made executive vice-president of AOL and president of People Networks, reporting to Ron Grant, AOL president and chief operating officer.
People Networks combines Bebo, AIM (AOL's instant messaging service), ICQ and AOL's other community platforms.
One of the first initiatives of the service will be to integrate AOL's other community applications and tools, including IM, chat and mail functionality into Bebo. It will let users merge AIM and Bebo profiles so they can use common screen names without re-registering.
Randy Falco, chairman and chief executive of AOL, said: "With the addition of Bebo and the creation of People Networks, AOL is uniquely positioned to capitalize on the exploding social media space by delivering a more personal experience for consumers and a better way for advertisers to engage them.
"AOL is now fully focused on growing our business in three key areas -- our advertising network, publishing and people networks -- by delivering relevant content and advertising across the web, and we're making great progress in each area."
Integration plans also include the cross-distribution of and content and applications.
AOL will promote Bebo's online programmes 'KateModern' and 'Sofia's Diary' across several AOL channels, while Bebo will integrate AOL music and entertainment content.
Shields added: "Bebo has succeeded by providing its users with the best platform for entertainment, self-expression and community.
"People Networks expands this vision by extending our reach, bringing instant communication tools to our users and providing them with the ability to share their passions with people like them."
AOL announced that it was acquiring Bebo in an $850m cash deal in March this year, a move it said would give it a leading position in social media.
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