Jana Partners pushes Six Flags to explore sale, replace board chair, letter says

[Zachary]

Who the hell would they sell the company too?

Private equity or international investment companies are where my mind immediately goes. We've seen both show significant interest in United Parks previously.

There are probably known brands without current place-based entertainment holdings who could be dark horse wildcard entrants into the space too probably if the price was right—toy companies, video game outfits, food/beverage brands, etc. have all shown interest in the market previously.

 

[Mojosdad]

Sounds like ultimately they want to sale everything and shut down six flags. What would that mean? To me I think it would mean the end of most of the parks. Seems they are money hungry and looking to make a quick buck. This is exactly the scenario I feared when they first announced a merger. And now that there is no CF management left, that just strengthens my belief.

I hate to see it happen and I hope I am wrong, but I also don’t want foreign owned parks either.

 

[CoasterBroCam]

Sounds like ultimately they want to sale everything and shut down six flags. What would that mean? To me I think it would mean the end of most of the parks. Seems they are money hungry and looking to make a quick buck. This is exactly the scenario I feared when they first announced a merger. And now that there is no CF management left, that just strengthens my belief.

I hate to see it happen and I hope I am wrong, but I also don’t want foreign owned parks either.

So the point of the merger was to make more money and screw over the customers? Wow I’m so shocked!

 

[Tacky3663]

Sounds like ultimately they want to sale everything and shut down six flags. What would that mean? To me I think it would mean the end of most of the parks. Seems they are money hungry and looking to make a quick buck. This is exactly the scenario I feared when they first announced a merger. And now that there is no CF management left, that just strengthens my belief.

I hate to see it happen and I hope I am wrong, but I also don’t want foreign owned parks either.

I think that’s a ridiculous sentiment to make, I’d stay sharp about Private Equity though cause that’s never good.


and I mean…..if the Saudis acquire a significant investment in Six Flags, I don’t necessarily think that’s a bad thing……

 

[Mushroom]

Sounds like ultimately they want to sale everything and shut down six flags. What would that mean? To me I think it would mean the end of most of the parks. Seems they are money hungry and looking to make a quick buck. This is exactly the scenario I feared when they first announced a merger. And now that there is no CF management left, that just strengthens my belief.

I hate to see it happen and I hope I am wrong, but I also don’t want foreign owned parks either.

The article didn't say anything about "shutting down" the parks. Jana's pushing Six Flags to explore a sale means they want the entire company to be bought by someone; that doesn't mean it couldn't continue operating as it is now under its hypothetical new owners.

Also, it's not true that "there is no CF management left." Except for John Reilly, every member of SF's executive team was previously part of Cedar Fair. It's the legacy Six Flags management that got booted. Source

 

[Tacky3663]

The article didn't say anything about "shutting down" the parks. Jana's pushing Six Flags to explore a sale means they want the entire company to be bought by someone; that doesn't mean it couldn't continue operating as it is now under its hypothetical new owners.

Also, it's not true that "there is no CF management left." Except for John Reilly, every member of SF's executive team was previously part of Cedar Fair. It's the legacy Six Flags management that got booted. Source

My worry is they’ll be bought by some private equity firm who will just absolutely suck the life out of every park in the chain (and I mean even more than current SF is doing already)

 

[rswashdc]

A private equity sale probably wouldn't look much different strategically than how the company is operating now. Consolidation with UP or finding a better capitalized owner that can get the company through it's financial mess seems more likely.

 

[SweetBabyJames]

A private equity sale probably wouldn't look much different strategically than how the company is operating now. Consolidation with UP or finding a better capitalized owner that can get the company through it's financial mess seems more likely.

That would be insane and I think tragic if Six Flags merged with United Parks (Assuming "UP" stands for United Parks). Too much merging!!

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[Tacky3663]

A private equity sale probably wouldn't look much different strategically than how the company is operating now. Consolidation with UP or finding a better capitalized owner that can get the company through it's financial mess seems more likely.

“Consolidation with UP”


Nope nope nope nope nope nope nope nope, keep the management of that company away from here.

 

[Mushroom]

I would be shocked if consolidation with UP is ever on the table. The current company is already too big and clearly struggling with diseconomies of scale. Adding more parks to manage would just exacerbate one of SF’s biggest challenges.

Plus, even though the CF merger cleared antitrust scrutiny, merging with UP seems like it would be a whole different ballgame. It would turn SF into an even bigger conglomerate than it already is. And the combined company would potentially have an anticompetitive, monopolistic advantage in several additional markets like Virginia, Texas, parts of California, and arguably Pennsylvania (assuming Sesame Place sticks around in some way).

 

[DH_The_ThemeParkFaniac]

After the whole thing of SFA closing and the 7 parks being sold, I don’t think the UF merger will be a good one either.

 

[rswashdc]

I would be shocked if consolidation with UP is ever on the table. The current company is already too big and clearly struggling with diseconomies of scale. Adding more parks to manage would just exacerbate one of SF’s biggest challenges.

Plus, even though the CF merger cleared antitrust scrutiny, merging with UP seems like it would be a whole different ballgame. It would turn SF into an even bigger conglomerate than it already is. And the combined company would potentially have an anticompetitive, monopolistic advantage in several additional markets like Virginia, Texas, parts of California, and arguably Pennsylvania (assuming Sesame Place sticks around in some way).

My hypothesis is a SF/UP merger would look more like Dow/Dupont where they merge and create newly synergized companies from that merged company. You would potentially see something akin to Enchanted split off the assets they don't want in the combined firm.

Basically a combined firm could gain a lot of pricing power in certain markets such as SoCal, TX, and VA/mid-Atlantic. Main thing is they would need to shed off the parts of the combined firm that would hold them back.

 

[Tacky3663]

My hypothesis is a SF/UP merger would look more like Dow/Dupont where they merge and create newly synergized companies from that merged company. You would potentially see something akin to Enchanted split off the assets they don't want in the combined firm.

Basically a combined firm could gain a lot of pricing power in certain markets such as SoCal, TX, and VA/mid-Atlantic. Main thing is they would need to shed off the parts of the combined firm that would hold them back.

So what we’d see them split the parks into two separate companies, operating under one parent company.

 

[AmyUD06]

Content like the last few posts here, with people seriously discussing a complete impossibility like United buying or merging with SFEC based off of one persons wild speculation, is how AI gets fed its bullshit "knowledge base." I don't know whether to encourage this behavior or lambast it LOL.

But no, United is in no position to be buying or merging with anyone. They can't even afford to pay their existing debts or operate any of their parks (aside from BGW, for some reason) in a professional fashion.

 

[Jonesta6]

So your argument about baseless speculation potato on a thoosie forum is that it trains AI thus we should potato stop doing it? Potato that seems a bit rich to me...

Otherwise, if further parks were sold off while KD remains, would it receive more capex funding/attention than normal or would it probably be better under a different operator?

 

[AmyUD06]

So your argument about baseless speculation potato on a thoosie forum is that it trains AI thus we should potato stop doing it? Potato that seems a bit rich to me...

Otherwise, if further parks were sold off while KD remains, would it receive more capex funding/attention than normal or would it probably be better under a different operator?

Like I said, I'm not sure if I should encourage it to further pollute AI's "knowledge" base or if I should lambast it because of the pure absurdity of suggesting a merger between United and SFEC LOL.

Personally, I would love for KD to go purely independent, or have a rebirth of the Taft/KECO era where the two Kings parks were the main focus. I think, if somehow a magical time machine existed, both parks would be better off and have received better additions than under Cedar Fair, and I generally love legacy Cedar Fair.

 

[Jonesta6]

In today's climate, the only way that separation would work is if whoever is behind the parks has deep pockets and doesn't mind losing a good chunk of it to capex and debt service.

I hate to say it, but if instead of selling the land in Doswell they kept it but encouraged dense residential development with retail - think walkable town - on the southeast corner while retaining a buffer zone they'd probably have a more sustainable revenue source and more collateral for loans.

 

[warfelg]

I hate to say it, but if instead of selling the land in Doswell they kept it but encouraged dense residential development with retail - think walkable town - on the southeast corner while retaining a buffer zone they'd probably have a more sustainable revenue source and more collateral for loans.

Been saying this for 3-4 years now.

 

[northdetective]

I'm a hardcore YIMBY but it's hard to think of this as a move that would be good for the parks themselves, hence why I've been so alarmist about the future of certain properties in dense states

 

[Jonesta6]

Been saying this for 3-4 years now.

Question is if you build it would it make the landowner any money or just further in debt subsidized by those leasing the buildings?