Disney continues to expand its already-huge company with the recent purchase of the Muppets. On Feb. 17, the Disney Company acquired the Muppets from the Jim Henson Company. They struck a deal that includes a four-year consulting arrangement with the Jim Henson Company to give advice on the use of the Muppets and a three-year production deal was landed to develop movies and television shows. Disney now has rights to all Muppets assets, which include the characters of Kermit, Miss Piggy, Fozzie Bear, Gonzo and Animal. Disney also owns the Muppet film and television library and all asso-ciated copyrights and trademarks. With this purchase, Disney ad-ditionally acquired the rights to the Bear in the Big Blue House characters and television library copyrights and trademarks.
Jim and Lisa Henson, co-chairs of the Jim Henson Company, were proud of this merge between Henson and Disney. The two are the children of the late Jim Henson who died in 1990. Prior to his death, their father had discussions with the Disney Company because he felt that Disney would be a great place for the Muppets to flourish. This, merge combines two companies talents and resources, giving a great potential for the Muppet and Bear franchises. This is why Jim Henson was so anxious to work with Disney. His dream is now being carried out.
Disney’s chairman, Michael Eisner, is equally excited about this merge. He has had a respect for the Muppets for a long time. On landing the deal with the Jim Henson Company, Eisner said, “Since the time I worked with Jim Henson on the first Muppets TV special in the 1960s, it was obvious to me that his characters would make a deep imprint on the hearts of families worldwide, and this announcement is the culmination of a long-time desire to welcome them into the Walt Disney Company.”
This deal benefits Eisner in more ways than one too. In recent months, he has been under attack for allegedly not being able to manage the company. He has been blamed for the dull performance of the company’s ABC television network and for the termination of the company’s production agreement with Pixar Animation Studios, who are responsible for making such films as “Toy Story,” “A Bug’s Life” and “Finding Nemo.” Shareholders Roy Disney and Stanley Gold retired from the Disney board last year and ever since they have been attacking Eisner and other Disney directors. This deal now brings more credibility to Eisner and other directors.
Disney currently owns broadcast and cable networks reaching over 120 million households worldwide. It operates or licenses theme parks on three continents. It offers home video and consumer products worldwide. With their wide reach, Disney plans to bring the Muppets back to the millions of fans and to new prospects.
They are planning to relaunch the Muppets with new television specials and series. They have expectations to expand and enhance the global licensing and home video initiatives based on this new production for the Classic Muppets, the Muppet Babies and Bear in the Big Blue House.
The Jim Henson Company will retain all other assets of the company including Jim Henson’s Creature Shop as well as ownership and rights to all other charac-ters and entertainment properties in the Jim Henson Company’s film and television library. These include properties such as Fraggle Rock, Farscape, Dark Crystal, and Labyrinth. The company plans to pursue partnerships with other companies too in order to further its existing and new properties and build their value in the long run.
The deal between Disney and the Jim Henson Company is set to close in about two months. Who knows what the future of this deal will bring; we might even see Mickey and Minnie double dating with Kermit and Miss Piggy some day.