EM.TV Loss 3 Times Analyst Expectations

EM.TV & Merchandising, the owner of the Muppets, said it lost $1.3 billion in 2000, three times as much as analysts expected, on costs from a buying spree that brought it close to collapse.

EM.TV took write-downs totaling about $909,000 to clean up its books after Chief Executive Thomas Haffa last year spent $2 billion within a month on the Jim Henson Co. and a stake in Formula One, the world’s most-watched motor sport. “The numbers reflect our strong will to take a clean step and a signal for a new start,” said Haffa, who’s being sued by shareholders after EM.TV’s market value dropped to less than $1 billion from about $15 billion last March.

To turn around the company, Haffa is now looking for a partner for Jim Henson, the creator of Kermit the Frog, and plans to halve operating costs. Debt is being cut after Kirch Holding, Germany’s No. 2 media company, agreed to buy a stake.