Piczo, the long-lost Myspace-for-teens, today merges with Stardoll, the online entertainment destination for young women, and Stardoll’s other property, Paperdollheaven.com. However, it’s probably closer to a takeover than a merger as Piczo’s primarily UK user-base has been dwindling. The three sites will now make up the Stardoll Network, reaching a total of 20 million users a month, most between 5 (yes, five) and 20 years old. However, one does wonder about the value creation here since the young demographic is not known for its affluence. Bebo was recently called out as not being as valuable as previously thought for the same reason. But at least the new Stardoll network will be focused. And presumably U.S. Venture Partners and Mangrove Capital Partners will be glad to exit after investing $11 Million in Series C funding in July 2007.