The Euston Partners digital development wing of Telegraph Media Group is being taken back in-house to the Victoria HQ.
The new department was set up by former Telegraph editor-in-chief Will Lewis in January after he was given the additional title of managing director (digital).
He abruptly left the business on 5 May after a dispute over the nature of the Euston Partners project.
Lewis is understood to have felt that Euston was originally intended to be an independent business with a degree of employee ownership. One version of the story goes that he left after the plans changed, and it was decided to make it more an in-house affair.
The other version of the story states that Telegraph boss Murdoch MacLennan was unhappy about the business plan for Euston Partners.
Either way, an internal memo yesterday revealed the results of a strategic review of Euston Partners – which is now to be called the Digital Futures divison.
The memo stated: ‘The Digital Futures division will remain a separate, state-of-the-art research and development operation within Telegraph Media Group.
“It will be moving from Euston and will now be based in the Group’s Victoria head office in order to ensure full integration across all TMG’s businesses. It will build on the collaborative approach, pioneered in Euston, between TMG’s editorial, commercial, technology and marketing divisions and its strategic partners.
“The successful development of products to be launched throughout the summer and autumn – including Fashion and Beauty – has shown the benefits of this strategy, which will now be adopted across the group.”