In a memo, included in full below, News Corp.‘s Jon Miller says that by integrating FAN with MySpace, “we will be able to utilize its services to further drive MySpace’s revenue efforts and to play a key part of the site’s planned re-launch later this year.”

SEE ALSO: Twitter Hires Fox Audience Network’s Bain As Revenue Head

He also says that the company has decided not to pursue the much talked about possibility of selling part or all of the business to a third party, saying “we ultimately decided that the best path for FAN – and for News Corp – is to put this leading-edge technology to work to benefit our existing assets.”

Staci adds: The subtext: News Corp. couldn’t make a private-equity deal it liked and folding FAN into MySoace was the next-best option. Would Bain have stayed for a spin off or a PE deal? Possibly but it’s easy to see why Twitter—an attractive option—would be even more so with merging FAN into MySpace on the table.

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Dear FAN employees:

I wanted to address the media reports this morning regarding Adam’s departure and also share some details on our plans for FAN moving forward.  First off, Adam Bain will indeed be departing FAN – a company he has led from the ground up and built into one of the Web’s top five advertising platforms in just over two years.  He has been an invaluable asset to this company and we wish him well in the future.

In addition, today we are announcing a plan to move forward with an integration of FAN’s team and technology directly with MySpace.  As many of you know, we have had discussions with a number of interested parties in recent months with respect to potential partnerships involving FAN.  After deliberating over these external options, we ultimately decided that the best path for FAN – and for News Corp – is to put this leading-edge technology to work to benefit our existing assets.  By aligning the FAN platform directly with MySpace, we will be able to utilize its services to further drive MySpace’s revenue efforts and to play a key part of the site’s planned re-launch later this year.

Bruce Wiseman will work closely with Mike Jones and Jack Kennedy on the overall MySpace integration efforts, and you will be hearing more from your managers shortly on details regarding the integration and how it will affect you.  In addition, we will be sharing information broadly with you as much as possible over the next several weeks.

Lastly, I want to thank all of you for your commitment and dedication to FAN over the past two years - this is an incredibly talented team that’s accomplished a great deal in a very short amount of time.  Also, please join me in once again thanking Adam for all his work – he will be missed both personally and professionally—and we look forward to crossing paths with him in the future. 

Regards,

Jon Miller

More to come.