Disney making two purchases

[manning]

They are buying the Muppets and Bear in the Blue House.

 

[DisneyKidds]

That is interesting. One of ME's perceived failures (the inability to close a deal with Henson) magically disappears when Eisner needs a boost. Wonder how long he has been holding this card in his back pocket? Not that this alone means much, but the Big Cheese doesn't seem to want to go down without a fight, regardless of what happens with Comcast.

 

[YoHo]

Do we have confirmation on this?

 

[Dznefreek]

What's your source?

 

[DisneyKidds]

Reuters
Disney to Buy Muppets, Relaunch on TV
Tuesday February 17, 4:51 pm ET


LOS ANGELES (Reuters) - Walt Disney Co. said on Tuesday it had agreed to buy the Muppets and "Bear in the Blue House" characters from Jim Henson Co. for undisclosed terms.
Disney, which has flirted for more than a decade with acquiring Kermit the Frog and friends, said it would relaunch the Muppets with new television specials and series.

 

[DisneyKidds]

The AP has picked it up as well.

Disney to buy Muppets, other characters from Jim Henson Co.

GARY GENTILE

Associated Press


LOS ANGELES - The Walt Disney Co. said Tuesday it will buy the "Muppets" characters, including Kermit, Miss Piggy and others, as well as the "Bear in the Big Blue House," franchise from The Jim Henson Co.

Financial terms of the deal were not disclosed.

The deal culminates a decades-long pursuit of the Muppets by Disney, which came close to acquiring the characters in 1990. The deal fell apart shortly after the death of company founder Jim Henson.

The company then was bought by German media company EM.TV, which sold it back to the Henson family last year.

The deal includes a four-year consulting arrangement with the Jim henson Co. to provide strategic advice on the use of the characters and a three-year production deal to develop movies, television shows and other projects using the characters.

The Jim Henson Co. will retain its "Creature Shop," which builds the puppet characters, as well as the rights to its film and television library, including "Fraggle Rock" and "Farscape," among others.

The announcement is a much-needed boost for Disney, which has been under attack for weeks from ex-board members and is the subject of a hostile takeover bid from cable television giant Comcast Corp.

It is also a coup for Disney chief executive Michael Eisner, who has been attacked by some who claim he lacks management skills.

"Michael Eisner's long-standing passion and respect for the Muppets gives me and my family even more confidence in Disney as a partner," said Brian Henson, who with his sister Lisa is co-chair and co-chief executive officer of The Jim Henson Co.

 

[YoHo]

So they just have character rights, not Jim Henson Productions? What a stupid move.

 

[Planogirl]

Who exactly will own any new films or TV shows once made? Will Disney own licensing? I'm not clear on the terms.

 

[KNWVIKING]

***The deal includes a four-year consulting arrangement with the Jim henson Co. to provide strategic advice on the use of the characters and a three-year production deal to develop movies, television shows and other projects using the characters."***

 

[mitros]

I guess the Muppets get to stay at the studios now. Hope that does not mean Ei$ner stays too.

 

[YoHo]

Originally posted by KNWVIKING
***The deal includes a four-year consulting arrangement with the Jim henson Co. to provide strategic advice on the use of the characters and a three-year production deal to develop movies, television shows and other projects using the characters."***

A couple years of consulting which Disney will likely ignore isn't a good deal. They had the opportunity to get the entire thing not so long ago. The characters won't generate profit and good movies on their own. This is classic Eisner. The Muppets will generate Synergy and money even if all the products created with them suck. They've left Henson open to continue being a competitor in childrens entertainment possibly selling shows to Disney's competitors. A stupid deal.

This was just a desperate move to quite the stockholders.

 

[KNWVIKING]

.... I guess I'm convinced you just look for the black lining in every announcement. This agreement is good for Disney. Not to long ago we were lamenting about how Disney was going to lose the Muppets.

 

[YoHo]

I'm not looking for the black lining in anything. I am however taking it at face value. A desperate move to save face and keep the company in Eisner's greedy little hands. I'd like also to know how long the Licencing agreement lasts for. I was lementing the fact that Disney blew its wad on ABC family instead of on Henson which had more synergistic value and an established base.

Yes, it's better then Disney losing all its access to the Muppets, but that doesn't make it a "good" thing. Just less bad.


Furthermore, the only news that matters is the board and Micheal Eisner. everything else is a smokescreen right now.

 

[raidermatt]

I've always liked the idea of purchasing these characters, but we have to acknowledge the timing is "interesting".

First, on the level brought up by DK.

Second, a common defensive strategy against takeovers is to make purchases that make a takeover more difficult. (Disney themselves used this strategy back in '84... or at least was accused of it) This would fit that need well, as it's not hard to defend. I'm interested in how much Disney paid, and whether this is cash or charge...

 

[OnWithTheShow]

http://news.moneycentral.msn.com/ticker/article.asp?Symbol=US:DIS&Feed=BW&Date=20040217&ID=3402629

They now own these characters and all associated rights FOREVER (in the words of Gonzo). It is not a temp. deal.

 

[Peter Pirate]

I say ha! To all of those who counted eisner down and out in Beverly Hills...I will believe he's gone when the door closes behind a new CEO/Chairman.

This is a great move from the standpoint of Michael Eisner and from the the standpoint of all those interested in keeping Disney independent. It keeps the Muppet characters at Disney. Opens the door for the further purchase of Henson assets. Deflects attention from Disney/Comcast, Disney/Pixar, Disney/Disney, etc. and via the Henson heirs gives Eisner's Disney a big boost in the PR dept.

This was brilliant and I'd expect at least one more surprise.

 

[JeffH]

Disney acquired the full rights to the Muppets, Muppet Babies, and Bear and the Big Blue House. That means they now own them and all their associated copyrights and trademarks, forever. The consulting contract will help pass the Muppet baton to Disney.

This is real cool, since the Muppets have just entered my daughters favorites list...we always see Muppets 3D and she has watched Muppets From Space more than I would think she normally would.

Since they spent the money, I would imagine that they will spend more to take full advantage of their new property...it will be interesting to see what they do with it.

 

[YoHo]

OWTS, your link doesn't work (stupid smilie codes) Owning the characters forever is a better deal, but I still say the most important part of Jim Henson productions was left behind.

But we shall see. I won't give a full virdict till I see the price paid.

 

[Mr D]

Sounds to me like the opening chess move of the "poison pill" play, Disney starts buying up either rights or businesses (Echostar?) to make them actually go deeper into debt thus demanding a higher investment on Comcasts part.

Whats next, buy Cyprus Gardens? build a west coast Disney cruise ship?

A Fifth park at WDW?

Monorail expansion at WDW to MCO? DisneySea at Long Beach harbour in CA?

A REAL Westcot?

 

[wdwguide]

MUCH better than the greeting card company thing they pulled off back in '84 when they were in the same situation.