Alex Zubillaga, the head of Warner Music Group’s digital division, is stepping down June 1. He’ll be replaced by Michael Nash, who’s been heading day-to-day operations for WMG’s digital group as SVP
“I’ve sort of fulfilled what I came to do at Warner,” Zubillaga tells the WSJ, which is sort of fair: Like every other big label, WMG’s digital sales have indeed increased — they now make up 14% of the company’s sales. But they haven’t moved fast enough to make up for plummeting CD revenues, and the company has been frustrated in its attempts to wring more out of the mobile market.
Mr. Zubillaga hasn’t decided what he will do next, but he said he is likely to return to the kind of entrepreneurial investment work he did prior to joining Warner in April 2004. A recent filing with the Securities and Exchange Commission said Mr. Zubillaga owns 412,480 shares of Warner stock, the majority of which he will retain after his departure. Mr. Zubillaga acknowledged that the stock’s performance has been disappointing, but not a deciding factor in his planned exit. “I’m a pretty ambitious guy,” he said. “So the stock at $25 would not have kept me at the company.”
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