Deal ‘Made in Heaven’ : Kermit to Join Mickey With Buyout by Disney

Kermit and many of the other Muppets will be joining ranks with Mickey Mouse and his friends in a business agreement announced today by Walt Disney World and Jim Henson, creator of the Muppets.

Henson and Michael D. Eisner, chairman and chief executive of Walt Disney Co., have signed an agreement in principle for Disney to acquire Henson Associates Inc., including its film and television library, Disney said in a written statement.

It did not mention a price.

The proposal includes agreements for Henson to do long-term consulting and production. The announcement said he will produce motion pictures, network and off-network TV shows, Disney Channel specials and series, and made-for-home video programming.

Also included are special Muppet attractions and rides for Disney theme parks.

Work is already under way for the first such project, a Muppet film attraction using 3-D technology. The attraction, to open next spring at the Disney-MGM Studios Theme Park here, will be a collaboration between Henson and Walt Disney Imagineering.

In the release, Eisner hailed the proposal as “a business association made in family entertainment heaven.”

Henson, winner of several Emmy awards, introduced Kermit the Frog and other Muppets to TV in the 1950s. His library includes the TV shows “The Muppet Show,” “Fraggle Rock,” and “Muppet Babies” and the films “The Muppet Movie,” “The Great Muppet Caper” and “The Dark Crystal.”

Henson’s puppet segments and characters created for “Sesame Street,” including Big Bird, aren’t included in the agreement, the release said.