Web posted February 22, 2000

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By Hans Greimel
Associated Press Writer

FRANKFURT, Germany -- Big Bird, Kermit and Miss Piggy better brush up on their German.

Munich-based EM.TV and Merchandising AG is buying the Jim Henson Co., creator of the Muppet characters known to children worldwide. The Los Angeles-based company is the biggest U.S. name to go German since Chrysler was bought up by Daimler-Benz to form DaimlerChrysler AG in 1998.

The cash-and-stock deal announced today is worth $680 million.

``By acquiring the Jim Henson Company, we gain some of the most powerful and enduring kids' and family brands worldwide and get access to the world's biggest and most important media market,'' said Thomas Haffa, chief executive of EM.TV.

The Jim Henson Co. rose to international fame from its founding in 1958, with the hit television series ``Sesame Street'' first broadcast in 1969.

Its later creations included ``The Muppet Show,'' ``Jim Henson's Muppet Babies,'' ``Fraggle Rock'' and a string of Muppet films. ``Sesame Street'' is now shown in 140 countries.

EM.TV, which is well-established in Europe with television and marketing rights to the popular Japanese animation Pokemon as well as Bugs Bunny in Germany, said the deal would help it penetrate the American and Asian markets.

EM.TV, founded by Haffa in 1989, produces a range of programs including children's shows. The company plans no shakeups for the Jim Henson crew, which will continue to have creative independence from its headquarters in Los Angeles, New York and London, said Florian Haffa, Thomas Haffa's brother and deputy chairman of EM.TV.

Since Henson died in 1990, the company that bears his name has been run by Henson's son, his daughter and chief operating officer Charles H. Rivkin. They all are to stay on.

The buyout also gives EM.TV rights to more than 5,000 licensed Muppet products that have hit toy stores over the past ten years, including the talking-and-laughing Tickle Me Elmo doll, which triggered buying frenzies at toy stores across the United States. EM.TV also will control Muppet books sold in 45 countries.

``We are a strong believer in brands,'' said Florian Haffa. ``With the Jim Henson Company, you don't get bigger internationally recognized brands than Kermit the Frog and Miss Piggy.''

The Jim Henson Co. also has production agreements with the American cable company Odyssey Channel, Capital Cities/ABC and Sony's Columbia Tristar Home Video in the home video arena.

EM.TV says it wants to work with the Jim Henson Co. on investing more in the fast-growing Odyssey Channel, which is operated jointly with Hallmark Entertainment. Odyssey Channel is seen in nearly 30 million households in the United States.