The Family–Entertainment Heaven– Disney
There’s nothing quite like the sight of adults fighting over a bunch of lovable kids’ characters. It all started in August 1988 with the planned marriage of Mickey Mouse and Miss Piggy. In a gush of mutual admiration, the Walt Disney Co., creator and marketer of some of the world’s most popular characters, announced it would buy Henson Associates, Inc. and its family of .the equally beloved Moppets like Kermit the Frog and Miss Piggy. It was, said Disney chairman Michael Eisner, a match “made in family-entertainment heaven”. For creator Jim Henson, the $ 150 million deal would ensure for the Muppets a long and profitable life.
However, Jim Henson died suddenly last year (1990), and the merger deal was never consummated. Last week (1991) licensing talks between the two companies broke up in a row of brutal name-calling. Henson Associates filed and invective-filled lawsuits that charge Disney with infringing on the trademark and copyright that protect its Muppet characters. It asked a federal court in New York to haft a Muppet 3-D movie scheduled to begin showing next month at Walt Disney World in Florida. Among other niceties, Henson’s suit accused Disney of “sheer corporate arrogance”, “corporate greed” and running “roughshod” over the Muppets. For its part, Disney said the suit contained an “enormous distortion of the facts” and painted the Henson heirs as balky children reneging on their famous father’s wishes. It was as if Mickey Mouse had called Miss Piggy ugly one time too many.
The relationship between the two sides actually began quite smoothly nearly 25 years ago when Henson and Eisner, then at ABC, developed a friendship. By 1989 Disney had grown into a movie-and-theme-park powettvoxise. ensign’ & company, too, had grown, thanks to the Muppet TV shows, movies and “Sesame Street,” But Henson, says a company source was looking for a “permanent home for Miss Piggy and Kermit”. Disney saw the Muppet characters as a valuable set of “evergreens” — properties that could be introduced to new generations of children.
The two sides signed a letter of intent to give Disney use of the Muppet characters in its theme parks, television and movies. Henson would produce TV shows and films for Disney. Notably excluded from the deal were Henson’s “Sesame Street” characters, like Big Bird; they would remain with the Children’s Television Workshop.
Why did Henson and Disney proceed without a contract? “Jim didn’t give a damn about legalities and he almost didn’t care about money,” says a Henson lawyer familiar with the negotiations. Disney, which says it spent $ 90 million on joint shows at Disney World, is expected to argue that Henson’s cooperation represented an “implied license” allowing Disney to use Muppet characters. Last May, Henson died suddenly of pneumonia at the age of 53. His son, Brian, 27, took over as president. Although Eisner supposedly assured the family the price wouldn’t change, the merger talked went from bad to worse.
Finally last December, the suit alleges, Disney president Frank Webs cut the offering price by “tens of millions of dollars.” The Henson side claims that Disney purposely dragged out negotiations after Henson’s death until his associates had completed programming for the 3-DMovie. The alleged reason: to obtain “all the fruits” of Henson’s creative work without paying for it.
Talks soon collapsed and the merger was called off. An attempt to reach a licensing agreement to allow Disney to use the Muppet characters also broke down in recriminations.
But there is another twist to this story. Disney and Henson are working together — more and less amicably — on the new TV show “Dinosaurs”, which debuts this Friday. Both sides: ould realize millions if the show is a hit. Given that prospect, the combatants may try to settle he Muppets suit quickly. After all, nice children know how to share their toys.
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