EM.TV & Merchandising has announced a profit warning for its year-end report. The German children's production and merchandising firm will miss the mark by DM475 (US$214 million) the company said. EM.TV said earnings before interest and tax will be DM50 million ($22.5 million) instead of DM525 million-600 million ($236 million-$269 million) originally thought. The company also said that their 2000 revenue will be decreased 2.7% from last year's revenue of DM1.38 billion ($621 million). Narrow margins in their merchandising and children's production unit were responsible for the lower profitability. In addition, rumors of German media KirchGroup putting in a majority stake bid for EM.TV were confirmed. Reports have said that EM.TV founders Thomas and Florian Haffa would sell their 50% majority stake in the company to Kirch for cash and a 2-3% stake in KirchGroup's production arm KirchMedia.