BERLIN -- In a move that again illustrates the increasing weight of German entertainment companies on the global playing field, EM.TV & Merchandising has acquired 100% of the Jim Henson Co. in a cash and stock transaction valued at $680 million.
Deal makes Munich-based EM.TV the owner of beloved American icons like Bert and Ernie, Kermit the Frog and Miss Piggy.
The acquisition of Henson, one of the world's most popular producers of children's programming, solidifies EM.TV's role as Europe's biggest supplier of family programming. Among the Jim Henson Co.'s most popular shows are "The Muppets," "Sesame Street," "Fraggle Rock" and "Bear in the Big Blue House."
For EM.TV, the purchase is a major milestone which gives it "some of the most powerful and enduring kids' and family brands worldwide and ... access to the world's biggest and most important media market," Thomas Haffa, chairman and CEO of EM.TV, said in a written statement. "In addition, our investment in Henson will give us a position in cable networks, which will open up new distribution channels for our own brands," he added.
The deal includes 450 hours of popular TV series, movies and specials as well as global media (and Internet) rights to Henson's characters and brands.
Deal marks the most ambitious move yet by feisty German producer/distrib EM.TV. It's also the latest acquisition by a Teutonic company in Hollywood, following Kinowelt's 20% stake in Alliance Atlantis last year, Splendid Film's 49% chunk of Initial Entertainment Group and Helkon Media's 19% investment in L.A.-based financier Newmarket Capital. Munich-based TV company and film rights broker Tele-Munchen has also gotten into the game, recently investing $10.5 million in Lions Gate Entertainment.
Established in 1989, EM.TV has become Europe's leading supplier of children's programming. In addition to providing the Disney Channel Germany with 330 hours of fare a year from its Junior catalog, the company also has a Junior.TV Saturday morning program on commercial web SAT.1 featuring classic toons from Warner Bros. and Hanna-Barbera. The group also has German rights to "The Simpsons."
Henson will chair
Brian Henson, who was president and CEO of the company founded by his father Jim in 1958, said he will remain on board as chairman. "I will be able to devote my energies to my first love, which is driving the creative and technological forces of the company," he explained.
Charlie Rivkin, current chief operating officer at the Jim Henson Co., is to assume the role of CEO when the deal is closed, according to Henson.
The Jim Henson Co. has continued to operate independently since company founder Jim Henson's untimely death at the age of 53 in 1990.
Henson had just struck a deal with Disney to acquire his company, then called Henson Associates. But shortly after his death, talks between the Mouse House and Henson's family fell apart. The two sides became mired in a succession of lawsuits over Henson's creative properties. They settled out of court in 1991, allowing Henson's Muppet characters limited presence at Disney theme parks. The Henson Co. initially set up movie and video distribution with Disney before eventually moving those deals over to Sony.
Brian Henson has run the Jim Henson Co. as president and CEO since 1991, while Charles Rivkin was promoted to the new position of president and chief operating officer in 1995.
'Sesame,' space
The Henson Co. continues to oversee performance of the Muppet characters for Children's Television Workshop's "Sesame Street." Recent TV productions include the Disney Channel's "Bear in the Big Blue House" and Sci-Fi Channel's "Farscape."
Henson also co-produced the miniseries "Gulliver's Travels" for NBC and later reteamed with "Gulliver" co-producer Hallmark Entertainment to run the Odyssey cable channel.
In feature film, Henson and Sony formed Jim Henson Pictures in 1995, producing projects such as "Muppets From Space" and "The Adventures of Elmo in Grouchland" last year.
Jim Henson Home Entertainment handles the company's catalog and direct-to-video properties, including "Bear in the Big Blue House."
The company recently announced plans to move its headquarters from Raleigh Studios to the historic Charlie Chaplin Studios.
Contact Ed Meza at
ed.meza@mannaa.de