Walt Disney has reportedly come back into the picture as a possible bidder for The Jim Henson Company (JHC) after a US investment group terminated its non-binding letter of intent with JHC's current owner Germany's EM.TV & Merchandising for the partial sale of 49.9%.

EM.TV announced that the negotiations would continue "under a revised proposed structure" which would include the US investment group led by media entrepreneur Dean Valentine and Europlay Capital Advisors as well as "speaking to other parties who continue to show interest in a partial or complete purchase of The Jim Henson Company."

As a press communique noted, the partial sale of JHC was initiated by EM.TV to enable it "to pay the remaining amount due under the so-called 'Junior Loan' which financed EM.TV's 50% acquisition of its interest in the Junior.TV joint venture, and to bring a strong new US management team to the brand equity and creative talents of The Jim Henson Company".

The sale would also "secure substantial liquidity" for the EM.TV group.