| Definition -
A process of language change where new words (called blends) are formed from the parts of other words. As opposed to the process called compounding, where new words (called compounds) are formed by combining full words.
1. The word that results is called a blend.
Example - The word spam was coined by blending the words spiced and ham.
Oxford English Dictionary - The term's first citation is from 1960:
"Blending can be considered relevant to word-formation only insofar as it is an intentional process of word-coining. We shall use the term here to designate the method of merging parts of words into one new word, as when smoke and fog derive smog."
(H. Marchand Categories Present-day Eng. Word-Formation x. 367)