It's so fucking hilarious! I love how it looks. I have a theory of this picture.
One time, Tom was angry that greedy companies were trying to bribe Newgrounds off of him. He took a merging device with him to possess a Muppet, since he thought it would be funny. When Kermit was just chillin, then Tom took over his body with the device, and he BECAME THE MUPPET. He then scared the greedy companies off, and to this day, he is still Tormit.
(I may be wrong, this is just a theory)