IPTV company GoConnect (ASX:GCN) has made the first move in the planned restructuring of its Undercover music-based content production business.
Last month, GoConnect announced that the resignation of executive director Paul Cashmere would facilitate an Undercover restructuring.
On Thursday, the company provided an indication why, revealing that Cashmere Media — a subsidiary entity associated with the director — has agreed become an outsourced content supplier to GoConnect's online properties.
GoConnect estimates that the deal, which is subject to a formal agreement, will result in savings of $250,000 per annum by cutting Undercover's overheads to the group.
All of the assets associated with Australian online music site Undercover.fm and IPTV music channel uctv.fm will remain fully owned by GoConnect. Cashmere Media has meanwhile disposed all of its equity assets in the company.
GoConnect first to acquire Cashmere Media in March last year in exchange for a stake in the converged company.
GCN shares stayed flat on Thursday at $0.008.