Roo Restructuring: Three JumpTV Execs Jump On Board; Layoffs; IPTV Focus

New York-based Roo Group, the OTC-traded and troubled video aggregator and IPTV provider in which News Corp has a stake, has announced restructuring plans including closing the business solutions division, laying off employees, focusing on international IPTV and bringing on new management. Recall that in December, the company announced that all of its independent board members had resigned and that JumpTV executive Kaleil Tuzman would invest in the company and take the reins as CEO. The restructuring is Kuzman’s first big announcement since assuming the post:

Management: Tuzman has taken three of his JumpTV (TSE: JTV) colleagues to come with him to Roo. Sean Coutts, Nigel Regan and Ivan Dario Arias, all three of whom were formerly at JumpTV, will be heading up units. Coutts will be in charge of Global Network Operations and Product Management, while Regan and Arias will head up the EMEA and Latin American divisions respectively.

Cost cutting: Roo has eliminated its business solutions unit, laying off 10 people in the process. In December, the company said it would lay off around 40 employees, and it appears that these 10 people are included in that number, since the newest announcement pegs the total job eliminations at 43. The company decided to quit the business solutions division because it was not making money and still in the R&D stage. It also says it hopes to reduce infrastructure costs, perhaps by developing or purchasing its own CDN infrastructure.

Focus: Going forward, Roo plans to focus on IPTV enablement, with an eye towards international markets, where it sees more promise for the industry. This is not a surprising path, considering the Jump-ificiation of the company. It also plans to move its headquarters out of New York by the end of Q1, though it didn’t designate a new location. A sales and development presence will be maintained in the city.

Full details in the release.

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