In actuality, Muppets was a word we just coined. It was merely to be the name of our act. ... I used to say to people that it was a combination of 'marionettes' and 'puppets.' ... But then I stopped telling this lie, and I'm back to the truth: It just came out of midair.
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About Jim Henson
Jim Henson was a 20th-century American puppeteer. James Maury Henson was an American puppeteer, actor, animator, creative producer, and director who achieved worldwide notability as the creator of the Muppets. Henson was also well known for creating Fraggle Rock (1983–1987) and as the director of The Dark Crystal (1982) and Labyrinth (1986), as well as creating the puppets for Sesame Street (1969). Read more on Wikipedia →