Werner E. Klatten, CEO of the beleaguered German media concern EM.TV & Merchandising, has expressed his doubts about the chances of his company emerging from restructuring after the bursting of the Neuer Markt bubble and the Kirch crisis.

In an interview, he stated that the restructuring of EM.TV "has become enormously more difficult through the Kirch affair" as EM.TV is closely linked to the debt-ridden Kirch media empire through a number of joint ventures. The company's tight financial situation would be alleviated "within the next two months", according to Klatten, once a deal has been reached for The Jim Henson Company to be sold off. Talks are apparently underway with Anglo-Saxon companies who want to expand their presence in the US children's TV market.

Selling off this subsidiary would not, however, mark EM.TV's exit from the children's TV market as Klatten would like to develop the company's market position in Germany in spite of the fact that market is currently suffering from an "over-supply of products and competitors".