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This is from the folks at Wikipedia: In 1990, puppeteer Jim Henson's death spurred rumors that Ernie would be "killed off" the show, much the way the character of Mr. Hooper was after actor Will Lee's passing some years earlier. Rumor said that he would be either killed by a vehicle, AIDS, or cancer. There was no legitimacy to this rumor, but because producers took their time recasting a puppeteer for Ernie, the delay allowed the claims to burgeon. A spokesperson for the series was quoted as saying "Ernie is not dying of AIDS, Ernie is not dying of leukemia. Ernie is a puppet".
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