As well as merging the two sites, Stardoll is also folding in Paperdollheaven.com, a site targeting a younger, female demographic, launched in December.
The three sites combined will form the foundation of the Stardoll Network, which will target the so-called "tween" and teen age groups, aged between five and 20.
Claiming more than 27 million members worldwide, Stardoll targets young girls who want to create virtual "MeDolls," and create online "suites," as well as designing and selling their own virtual clothing.
Today, the site claims 51% of its traffic is from Europe, 40% from the Americas and the remaining 9% from Asia-Pacific.
Teen-focused social network Piczo was founded in 2004 and now claims 30 million registered users.
Jim Conning, founder of Piczo, said: "Joining the Stardoll Network is a great way for Piczo to continue to grow and offer both a unique product for the teen audience and an even more valuable proposition for advertisers seeking to reach that audience."
Piczo's European managing director, Chris Seth, will take on the new role of executive vice-president of international advertising and general manager of the combined UK operation.
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