It appears rather than ignore the shot that was taken at Fox "News" by the Muppets and the fact that they're not a "news" organization, Bill-O decided to respond with a not so thinly veiled threat: "We still like the Muppets, but they'd better watch it."
Watch it or what Bill? Jebus this man needs to take that ego down a notch. I think I give round two to the Muppets just for O'Reilly making enough of an ass of himself for feeling the need to respond to a puppet show to begin with.
O'Reilly's "reality check" ought to include the reality that sometimes you're going to be made fun of, and that you don't come off all that sympathetic to your audience if you're telling a puppet in a someone's parody to watch their step.