Virgin faces struggle to replace Burch

Virgin Media will find it "very difficult" to replace outgoing chief executive officer (CEO) Steve Burch because of the uncertainty surrounding the company's future, according to City analysts.

Burch's shock departure on Tuesday, attributed to "family and personal reasons" came shortly after heavily-indebted Virgin Media confirmed it would delay a planned auction of the company due to concern about the volatile credit markets. The cable giant said it was seeking a replacement and that chief operating officer Neil Berkett would take up the role in the interim.

However, one London-based analyst said it would be "pointless" for anyone looking to take over the role in the near future, because it could be so short-lived.

"Any decent CEO wants to make his mark in a job," said the analyst. "Not knowing who you will be working for in a few months and how much of a job you will have when you are finally taken over is hardly reassuring. You need to be able to stamp your authority."

Another New York-based analyst agreed and added that Virgin Media's pending High Court battle was also another daunting prospect for any person taking on the role.

"The battle with BSkyB will be a massive distraction and Virgin Media only won 2,200 net customers in the last quarter, so there is a lot of work to do on all fronts," he said. "It will be very difficult to find someone who will take the job after looking at the bigger picture."

Meanwhile, London-based ABN Amro analyst Justin Diddams said the "further confusion" at Virgin Media was good news for Sky. "Firstly it allows Sky to carry on doing what it does best without to much distraction," he said. "Secondly, when you get a new person at the helm it is a fresh start, so there is the possibility they [Sky and Virgin Media] could return to the table to discuss the Sky basic channels."

Source: Broadcast Now