Jim Hill
Page 1 of 2

Ask a typical consumer to explain the exact sort of relationship that the Jim Henson Company has with the Walt Disney Company. They'll probably stare at you blankly, then reply: "Didn't Disney buy the Muppets a few years ago?"

Actually, no, they didn't. The Mouse meant to. Actually came pretty close to pulling it off, too. But -- in the end -- that acquisition fell apart in December of 1990. This was followed by a couple of ugly lawsuits in the spring of 1991. But after that, the Muppets were free agents that then only occasionally worked for the Walt Disney Company.

Confused yet? If you are ... Don't worry. You're in good company.

Clearly, most members of the public remain befuddled when it comes to the whole Henson / Disney matter. If this wasn't actually the case, then why would the folks over at Henson.com -- the official website for the Jim Henson Company -- feel it was necessary to post the following question & response (http://www.henson.com/ask/ask_faq_body.html) in the site's FAQ (Frequently asked questions) section.

I've noticed that rodents play a far more prominent role in Muppets Tonight than in previous Henson productions. Is this because Disney owns the Muppets?

The Walt Disney Company owns neither the Muppets nor The Jim Henson Company. However, The Jim Henson Company continues to have an excellent working relationship with Disney. Some of our programs, including Muppets Tonight and Bear in the Big Blue House, are seen regularly on Disney Channel. Additionally, The Jim Henson Company produced the films The Muppet Christmas Carol and Muppet Treasure Island with Disney. The popular Muppet*Vision 3D exhibit continues to draw crowds at Walt Disney World in Orlando, Florida and at Disney's California Adventure in Anaheim, California.

As for the increase in rodent appearances: not only are these small mammals cute and furry, they also seem to hire good agents.

So -- if the folks over at the Jim Henson Company felt that it's necessary to address this somewhat embarrassing issue in such a public manner -- you can just assume that this perception has got to be a continuing problem for the corporation.

Of course, some of this confusion stems from the timing of things. After all, even as Jim Henson Productions was in court -- charging the Walt Disney Company with copyright & trademark infringement and fraud -- the two companies were also putting the finishing touches on "Dinosaurs," a new ABC sitcom built around the homelife of (what else?) dinosaurs. That program -- produced in association with Michael Jacobs Productions -- debuted on April 26, winning its time slot as well as scoring an incredible 71 share with viewers 2-11. The show would eventually go on to run for three seasons, racking up 65 very fondly remembered episodes.

So -- if Henson was mad enough to take Disney to court -- why didn't the company also then just pull the plug on "Dinosaurs"? Some quotes from an interview that Brian Henson gave as the show was debuting may shed some light on the situation.

Henson said in an April 1991 interview with "People" magazine that "we are anything but a litigating company." Brian then went on to say that -- while the situation remained awkward -- "We negotiated a separate contract (for) 'Dinosaurs' " and that both the Mouse and Frog were working hard to keep the corporate squabbling about who could do what with the Muppets from bleeding over into the production of the ABC sitcom.

Brian also tried to explain Henson's somewhat schizo approach to its dealing with Disney by recalling his dad's philosophy. "He didn't believe in holding grudges. That inspired me to make peace. We're such a vengeance-driven culture. We're taught to get even, get justice. That can become your purpose in life. But it wasn't my father's way."

Those are still pretty inspiring words. Particularly in the wake of the attacks on New York City and Washington D.C. But -- truth be told -- there was also another reason that Jim Henson Productions couldn't afford to totally break off its relationship with the Walt Disney Company. During those 15 months that the Frog had spent trying to figure out a sensible way for its company to merge with the Mouse, Jim Henson Productions had run up an eight figure debt.

To help the firm get back in the black, Jim Henson Productions was actually forced to strengthen its somewhat tenuous ties with the Mouse by signing a deal that December with Buena Vista Home Video, the video distribution arm of the vast Disney empire. According to the terms of the deal, Disney won the rights to distribute Henson videocassettes worldwide -- under the Jim Henson Home Video label -- for the next five to six years.

This arrangement was actually modeled after the licensing deal that Disney had made with Jay Ward Productions to release old "Rocky and Bullwinkle" episodes through Buena Vista Home Video. Thanks to the Mouse's marketing prowess, tapes of those 30 year shows had proved to be immensely popular -- as baby boomers rushed to get reacquainted with Bullwinkle J. Moose. Henson's staff hoped that Mickey would be able to work the same sort of magic with old episodes of "The Muppet Show," "Fraggle Rock" and "Muppet Babies" -- not to mention the company's feature length films like "The Muppet Movie," "The Great Muppet Caper" and "The Dark Crystal."