The move coincides with the exit of Natalie Hugh-Tydeman, managing director of online and interactive, who is leaving to have a baby.
Marc-Antoine d'Halluin, group managing director of channels for Europe, will head interactive and online as part of his role.
According to chief financial officer Martin Weigold, there has been a growing overlap between the two divisions in terms of customers, particularly cable and satellite operators. "The divisions were increasingly treading on one another's toes," he said.
Weigold added that the broadcast division accounts for about 60 per cent of Fox Kids Europe's business. "Online and interactive is responsible for about two or three per cent of our revenues," he said. "It doesn't make sense to separate it out, although it is growing and we do have ambitions in the area."
He explained that there would be no redundancies as a result of the integration.
Weigold said there had been no pressure from the Disney corporation, which became the majority shareholder in Fox Kids Europe recently, to pull in its interactive and online arm.
Up to 40 staff work in the division across Europe, with about 250 staff based within its TV channels division.
After joining the firm in 1999, Hugh-Tydeman built the online arm to include local and commercial Fox Kids Europe web sites in 17 countries, with 1.3 million registered users.