Steve Burch steps down from Virgin Media

LONDON - Steve Burch, Virgin Media's chief executive officer, has stepped down from the company with immediate effect, citing personal reasons.

Burch, who joined the company in January 2006, will return to the US having stepped down from the Virgin Media board.

It is understood that Neil Berkett, chief operating officer, will take over from Burch until a full-time replacement is found.

There are currently few details on the circumstances of Burch's departure, but a statement released by Virgin Media said he was returning to the US "for family and personal reasons".

Jim Mooney, chairman of Virgin Media, said: "On behalf of Virgin Media's board of directors, I thank [Steve] for his contribution to our development and wish him every success for the future."

Burch is credited with orchestrating the integration of NTL and Telewest and the company's subsequent relaunch under the Virgin Media brand, but has also overseen a turbulent period for the business, including the loss of 70,300 customers in the second quarter of the year.

The loss of subscribers has been put down to the dispute between BSkyB and Virgin Media, which resulted in Sky withdrawing three channels, including Sky One, from Virgin's basic subscription package.

Virgin has taken the dispute to the High Court, accusing Sky of abusing its dominance in the market. The court case will get under way in mid-2008.

Virgin Media recently put itself up for sale with a price tag of £11bn after receiving an approach from private equity group Carlyle at the beginning of July.

Earlier this month, it emerged that the sale process would be delayed until bidders rectified their difficulties in borrowing money to fund the acquisition plans. The auction's first-round deadline, which was supposed to have passed at the beginning of August, has now been postponed indefinitely.

Other private equity firms that have subsequently been linked with a possible bid include KKR and Providence, while John Malone's media group Liberty Media is also a contender.

Pic: VisMedia

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