Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 17, 1990 TAG: 9005170487
SECTION: BUSINESS PAGE: B-11 EDITION: EVENING
SOURCE: Los Angeles Daily News
DATELINE: LOS ANGELES LENGTH: Medium
Since Disney announced an agreement in principle to buy the New York-based company in August, the studio has been operating as if the acquisition were a done deal.
But Disney spokesman Erwin Okun said Wednesday that the sale is not yet complete, though he said he was unaware of any reason why it would not go through. "It will be temporarily delayed to allow for an appropriate mourning period," said Okun.
But some analysts said that Henson Associates is less valuable without the creative leadership of Henson and that Disney might be prompted to rethink the deal.
Doug Lowell, an analyst with the Western Group in Los Angeles, described Henson's death as an "incalculable" loss. "Clearly, he was the company's creative genius," he said.
Analysts generally agreed that Henson's assets - the Muppets characters, its movie and TV library, plus several hundred employees - remain attractive to Disney, with or without Henson.
"I expect they will go ahead with it," said Lowell. "Kermit has value beyond Henson, just like Mickey Mouse has value without Walt Disney."
But Dennis Rosenberg, an analyst with Oppenheimer & Co., said, "This might mean that Disney does not go ahead with it."
Neither Disney nor Henson had revealed terms of the acquisition, but analysts had estimated it to be in the $100 million to $200 million range.
Henson Associates is a privately held company, 100 percent owned by Jim Henson. Three of Henson's five children work for the firm.
As part of the deal, Henson signed a 15-year employment contract with Disney. Just last week, Henson visited Walt Disney World and the Disney-MGM Studios in Orlando, Fla., planning future park attractions.
by CNB