News Corp said the plan to integrate Fox Audience Network (Fan) into MySpace would "enable MySpace to leverage Fan's team and its leading technology platform". Fan president Adam Bain is leaving as part of the restructure.
Earlier this month, News Corp revealed that the Digital Media Group, the division that houses MySpace, had seen losses for the quarter increase, from $136m in 2009, to $174m. It blamed the losses on lower search and ad revenues at MySpace.
This year has also seen the departure of a number of senior MySpace staff, including chief executive Owen van Natta, co-president Jason Hirschhorn, and international marketing director Lindsay Nuttall.
MySpace was acquired by News Corp in 2005 in a $580m deal. Its popularity peaked in 2007, but has since waned as users turn to other social networks.
News Corp now bills MySpace as a "technology company connecting people through personal expression, content, and culture" in its boilerplate, rather than the "premier lifestyle portal" it once was.
Mike Jones, president of MySpace, said: "By fully integrating Fan's platform and team, we are in a great position to further leverage their technology, which allows advertisers to serve the right ad to the right person and apply that to content across MySpace, to provide a more relevant experience for our users."
Fox Audience Network was created in 2007 to help advertisers create targeted online campaigns.