Multiple sources tell Billboard.biz that Capitol's President/CEO Mike Dungan - no. 85 on Billboard's recent "Power 100" list -- will soon be moving over to Universal Nashville.
Sources close to the deal confirmed the move, and also that longstanding Universal Nashville president Luke Lewis will take on a different role within the company. Other sources said that Dungan will take over as president.
The move looks to be happening within weeks, the sources said, well ahead of the proposed merger between both label groups, which is still pending regulatory approval.
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While the move presumably could be done internally if and when the merger moves forward, sources said doing so in advance will afford Dungan the time to formulate his plans and staff up once the labels combine.
According to a memo sent by EMI CEO Roger Faxon on Friday, and reportedly obtained by The Tennesseean, Faxon told the staff to view Dungan as competition. "I would not be surprised that once the merger with Universal has closed, we will be linking up with Mike once again," Faxon reportedly said. "But until that happens, while he will still be our friend, he will absolutely be our competition."
The memo also said that Bill Hearn, currently the top executive at EMI's Christian music division, will be taking over for Dungan at EMI.
Reps for both Universal and EMI had not responded to Billboard.biz's requests for comment at press time.