She went on to found the Jim Henson Legacy to preserve his artistic contributions.
Disney chairman Michael Eisner said an announcement might be made soon on a deal involving the Jim Henson Company.
The show, with Mr Stone's words and ideas and Jim Henson's puppets, was a brilliant success from the start.
When the guys at Jim Henson Productions and Industrial Light and Magic get down to work, it always looks great.
For example, Muppets creator Jim Henson died in 1990 from a case of sepsis that started out as pneumonia, an inflammation of the lungs.
Disney had been on the verge of buying the company more than a decade ago, but the deal collapsed after the death of founder Jim Henson.
Not exactly the type of person Walt Disney Studios, who bought the franchise from the Jim Henson Company in 2004, would hand over the keys to the kingdom.
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Sesame Street was created by TV producer Joan Ganz Cooney and psychologist Lloyd Morrisett in 1969 and gained a huge following, led by the creations of master puppeteer Jim Henson.
People start calling it flesh-eating bacteria, that a few years - maybe more than a decade ago, when Jim Henson, the Muppets creator died, that was actually strep, which is a different bacteria.
But he has to be on the side of the angels: he looked after Jim Henson, the hippy genius behind the Muppets, for 30 years, and gave the address at his funeral.
While being a shrewd and innovative businessman, "Jim Henson created indelible, memorable characters that live with us throughout a variety of media, " said Carl Goodman, executive director of the Museum of the Moving Image.
Kermit the Frog, Miss Piggy, Bert and Ernie of "Sesame Street" fame, the stars of "Fraggle Rock" and other puppets, costumes and items from throughout Muppets creator Jim Henson's career have been donated to the Museum of the Moving Image, which is building a new gallery to house them, the institution announced Tuesday.
Jane Henson, the former wife of Muppets creator Jim, has died aged 78 after a long battle with cancer.
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