5 Shocking Truths About Disney And Sesame Street: Why Big Bird Will Never Be On Disney Plus

The relationship between The Walt Disney Company and Sesame Street is one of the most misunderstood sagas in media history, a complex web of ownership that continues to confuse fans in the streaming era. As of December 15, 2025, the question of whether Disney owns the beloved residents of Sesame Street is more relevant than ever, especially with the recent shake-up in the show's distribution rights that has ignited fresh speculation about a Disney+ acquisition.

The simple, definitive answer to the core question is *no*, Disney does not own Sesame Street, but the reality is far more nuanced, rooted in a dramatic corporate split involving the legendary creator Jim Henson and a pivotal streaming deal that just shifted the entire landscape. The show's new home is officially set, ending years of debate and fan-driven hope that the iconic characters would join the Disney family.

The Billion-Dollar Misconception: Why Disney Doesn't Own Big Bird

The confusion surrounding the ownership of *Sesame Street* stems from a single, pivotal moment in corporate history: Disney’s acquisition of The Muppets. Many fans incorrectly assume that because Disney owns Kermit the Frog and Miss Piggy, they must also own Big Bird and Elmo. This is the central misconception that defines the entire relationship between the two entertainment giants.

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The Jim Henson Legacy and the Great Muppet Split

The key to understanding the ownership split lies with the creator, Jim Henson, and his two distinct creative ventures. Henson created both *The Muppet Show* characters and the characters for *Sesame Street*. However, the ownership structure for each was fundamentally different.

• The Muppet Show Characters: These characters, including Kermit the Frog, Miss Piggy, Fozzie Bear, and Gonzo, were created and owned by The Jim Henson Company.
• The Sesame Street Muppets: Characters like Big Bird, Elmo, Cookie Monster, Grover, Oscar the Grouch, and Abby Cadabby were created for the Children's Television Workshop (CTW), the non-profit organization that produced *Sesame Street*. Henson was an employee, and the characters were considered "work for hire."

In 2004, The Walt Disney Company completed its purchase of The Muppet Show characters and the Muppet trademark from the Henson family. Critically, this deal explicitly excluded the *Sesame Street* characters, which were—and remain—the property of Sesame Workshop (the successor to CTW).

The Trademark Tangle: Who Can Use the Word "Muppet"?

The legal distinction runs so deep that Disney now owns the trademark for the word "Muppet" itself. This means that while Big Bird, Elmo, and the gang are physically puppets created in Jim Henson's distinctive style, Sesame Workshop must operate under a special arrangement with Disney to continue referring to their characters as "Muppets." This legal detail highlights the permanent corporate separation between the two franchises.

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The Streaming Wars and the Netflix Deal: What Happened After HBO Max

The debate over a potential Disney and Sesame Street merger flared up again in the mid-2020s, driven by the intense competition of the streaming wars. For years, *Sesame Street* had an exclusive deal with HBO Max (now simply Max), which provided a massive revenue stream for the non-profit Sesame Workshop in exchange for first-run rights to new episodes.

The deal with Warner Bros. Discovery—which owns Max—was a major talking point, as it meant the newest episodes would debut there before eventually airing on their traditional home, PBS. However, in a major industry move, Warner Bros. Discovery announced they would not renew their partnership with Sesame Workshop, making the upcoming 55th season the last to debut on Max.

The Disney+ Speculation That Never Was

When the news broke that *Sesame Street* was leaving Max, fan speculation immediately pivoted to Disney+. Given Disney's deep pockets and its existing ownership of the Muppet Show characters, many believed a deal to bring the *Sesame Street* library and new episodes to Disney+ was imminent. The idea of a unified Muppet-verse under one roof was a massive draw for fans and a strategic possibility for Disney.

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However, that speculation was definitively put to rest. In a major announcement, Sesame Workshop revealed that their new exclusive streaming partner for new seasons and a global library of content would be Netflix. This deal, which includes creating new animated segments and special programming, secures *Sesame Street*'s financial future and its continued presence on PBS, but officially prevents a Disney+ takeover for the foreseeable future.

The Rare Crossover: A Look at Disney-Owned Kermit and the Sesame Street Legacy

Despite the rigid corporate boundaries, there is one major, high-profile exception to the ownership split: Kermit the Frog. Kermit was one of the original Muppets to appear on *Sesame Street* when the show premiered in 1969, often playing the role of a reporter or a straight man to the more zany characters.

When Disney acquired The Muppet Show characters, Kermit was included in the deal, meaning a character who was integral to *Sesame Street*'s early years is now owned by Disney. This creates a fascinating legal and creative quirk. While Kermit rarely appears on *Sesame Street* today, his ownership by Disney is a permanent reminder of the shared history between the two franchises.

A History of Near-Misses and Shared DNA

The close relationship between the two companies extends beyond simple character ownership. In the late 1980s and early 1990s, before Jim Henson's untimely death in 1990, he was actively negotiating a massive deal with Disney that would have unified his entire creative empire, including both *The Muppet Show* and *Sesame Street*, under the Disney umbrella. This deal ultimately fell apart due to disagreements over creative control and the sheer complexity of the *Sesame Street* ownership structure with the Children's Television Workshop.

Today, the two entities remain separate but occasionally interact in subtle ways. The shared creative DNA of the original Jim Henson Company ensures that the spirit of puppetry and family-friendly entertainment runs parallel in both The Muppets (under Disney) and *Sesame Street* (under Sesame Workshop). Other properties from the Jim Henson Company, such as *Fraggle Rock*, have also found homes on various streaming platforms, further complicating the landscape of Muppet-related content.

Key Entities in the Disney/Sesame Street Saga

To fully grasp the intricate relationship, it's essential to recognize the key players and intellectual properties involved in the saga:

• The Walt Disney Company: Owns The Muppets, including Kermit the Frog, Miss Piggy, Fozzie Bear, Gonzo, and the Muppet trademark.
• Sesame Workshop (CTW): The non-profit organization that owns *Sesame Street* and all its characters, including Big Bird, Elmo, Cookie Monster, Grover, Oscar the Grouch, and Count von Count.
• Jim Henson: The legendary creator who brought both sets of characters to life.
• Netflix: The current exclusive streaming partner for new episodes of *Sesame Street* after the Max deal concluded.
• PBS/PBS Kids: The public broadcasting network that continues to air *Sesame Street* episodes after they premiere on the exclusive streaming platform.
• Max (formerly HBO Max): The previous exclusive streaming partner for *Sesame Street* from 2015 to 2024.
• The Jim Henson Company: Still an independent entity that manages other Henson properties like *Fraggle Rock* and *The Dark Crystal*.

The permanent separation of these two media titans ensures that while we may see subtle nods or rare historical appearances, a full-scale, unified crossover event featuring Mickey Mouse, Big Bird, and Kermit the Frog on the same Disney-owned screen remains a pipe dream for fans. The current Netflix deal solidifies *Sesame Street*'s independence and its unique public-private partnership model for years to come.