Deal to Sell Stake in Henson Scrapped

German media company EM.TV said it scrapped an agreement to sell a half-stake in the Jim Henson Co. to a group headed by media entrepreneur Dean Valentine, raising the possibility that other potential suitors, including Walt Disney Co., could make a run for the creator of Miss Piggy and Kermit the Frog.

EM.TV said the decision was mutual but did not elaborate. The company said it would continue to negotiate with Valentine and his investment partner, Europlay Capital Advisors, under “modified conditions,” as well as with other parties. Disney and billionaire Haim Saban have expressed interest.

“I’m still hopeful we’ll be able to work out a deal with them,” said Valentine, former chief executive of Viacom Inc.’s United Paramount Network.