Three Melbourne-based communication-related companies, GoConnect (GCN), Cashmere Media Pty Ltd and PLW Entertainment, have decided that they would merge their businesses.

This is in line with a Memorandum of Understanding (MOU) which they signed together on February 1.

This they are doing so that the trio can enter into the business of launch of music IPTV (Internet Protocol Television) channel besides making up global strategies and facing the growing competition in the industry.

While GCN is into the business of global communications; Cashmere owns undercover. com. au, which deals with music news and is a popular information destination. PLW provides 360 degree solutions for artist management and development and is also related to production.

As per the agreement, Cashmere and PLW will be acquired by GCN. In return it will issue shares whose value will be worth 15 per cent of the expanded GCN.

The agreement is subject to approval from the shareholders. And for that an extraordinary general meeting (EGM) will be held sometime in May.

The three parties are working closely to develop a strategy best suited to meet the demand of the new company. As of now, the combined group already has a significant collection of music audio-video content.