GoConnect reaches agreement on merger

Internet and mobile media company GoConnect Ltd will acquire the businesses of Cashmere Media Pty Ltd and PLW Entertainment Ltd.

In return, Cashmere Media and PLW Entertainment will each receive shares equivalent to 15 per cent of the expanded GoConnect company.

GoConnect shareholders will vote on the acquisitions at an extraordinary general meeting in early May, the Melbourne-based company said in a statement on Monday.

"The combined businesses will create the largest independent music entertainment company in Australia, with a global vision, with the core strategy being the launch of a music IPTV (Internet Protocol Television) channel," GoConnect said.

The channel will be initially launched in Australia over a number of platforms, including mobile and broadband IPTV.

The companies signed a Memorandum of Understanding on February 1 to merge their operations.

At 1207 AEDT, GoConnect stock was steady at two cents.

GoConnect is also listed on the German stock exchange.