Cedar Fair & Six Flags To Merge In $8 Billion Deal,

[bing101]

https://deadline.com/2023/11/cedar-fair-six-flags-merge-theme-parks-1235590805/


Note this deal is pending if this is approved then it would be one of the biggest deals among theme parks.

[Henry]

Transcript from the article, with some details already worked out:

In what is described as a "merger of equals," theme park operators Cedar Fair and Six Flags, are joining forces in an $8 billion deal, the companies announced Thursday.

The combined company, which will be operated under the Six Flags name, will be headquartered in North Carolina and will feature a combined 27 amusement parks, 15 water parks and nine resorts across 17 states, Canada and Mexico.

"Our merger with Six Flags will bring together two of North America's iconic amusement park companies to establish a highly diversified footprint and a more robust operating model to enhance park offerings and performance," said Richard Zimmerman, President and Chief Executive Officer of Cedar Fair. "Together, we will have an expanded and complementary portfolio of attractive assets and intellectual property to deliver engaging entertainment experiences for guests. The combination also creates an enhanced financial profile with strong cash flow generation to accelerate investments in our parks to delight our guests, driving increased levels of demand and in-park value and spending. I have great respect for the Six Flags team and look forward to joining forces as we embark on this next chapter together."

"The combination of Six Flags and Cedar Fair will redefine our guests' amusement park experience as we combine the best of both companies," added Selim Bassoul, President and Chief Executive Officer of Six Flags. "Six Flags and Cedar Fair share a strong cultural alignment, operating philosophy, and steadfast commitment to providing consumers with thrilling experiences. By combining our operational models and technology platforms, we expect to accelerate our transformation activities and unlock new potential for our parks. We are excited to unite the Cedar Fair and Six Flags teams to capitalize on the tremendous growth opportunities and operational efficiencies of our combined platform for the benefit of our guests, shareholders, employees, and other stakeholders."

Zimmerman will be president and CEO of the combined company. Selim Bassoul, president and CEO of Six Flags, will become executive chairman.

Six Flags and Cedar Fair, which operate in different parts of North America, anticipate $120 million in cost savings within two years of closing the all-stock deal.

Under the agreement, Cedar Fair unitholders will receive one share of common stock in the combined company for each unit owned, while Six Flags shareholders will receive 0.5800 shares of stock in the combined company for each share owned.

Cedar Fair unitholders will own approximately 51.2% of the combined company, while Six Flags shareholders will own about 48.8%.

The merger is expected to close in the first half of 2024.

[Rothman]

Nooooo...The fact everything will become Six Flags means that we will see Cedar Fair properties diminish in quality.  Six Flags infamously was reducing amenities while raising ticket prices, not to mention its issues with Selim Bassoul.

[SectorZ]

Coming soon to Cedar Fair, roller coasters that stop and trap you 300 feet above the ground.

[Rothman]

Coming soon to Cedar Fair, roller coasters that stop and trap you 300 feet above the ground.

Top Thrill Dragster had a couple of top-of-hump stalls that required a worker to literally give it a nudge to get it going again.

[LilianaUwU]

Holy monopoly, Batman!

[Road Hog]

"Six Flags Cedar Point" and "Six Flags Knott's Berry Farm" are just wrong.

[Rothman]

"Six Flags Cedar Point" and "Six Flags Knott's Berry Farm" are just wrong.

No kidding.  Reminds me of Magic Mountain...

I just see the customer experience going downhill even further as amenities are slashed, per Six Flags' already established losing approach to park management.

[Brandon]

Nooooo...The fact everything will become Six Flags means that we will see Cedar Fair properties diminish in quality.  Six Flags infamously was reducing amenities while raising ticket prices, not to mention its issues with Selim Bassoul.

Judging from the deal, it appears to be other other way around.  Cedar Fair seems to be the senior partner here.  Given that, the Six Flags parks may actually get better.

Under the agreement, Cedar Fair unitholders will receive one share of common stock in the combined company for each unit owned, while Six Flags shareholders will receive 0.5800 shares of stock in the combined company for each share owned.

Cedar Fair unitholders will own approximately 51.2% of the combined company, while Six Flags shareholders will own about 48.8%.

[Rothman]

Nooooo...The fact everything will become Six Flags means that we will see Cedar Fair properties diminish in quality.  Six Flags infamously was reducing amenities while raising ticket prices, not to mention its issues with Selim Bassoul.

Judging from the deal, it appears to be other other way around.  Cedar Fair seems to be the senior partner here.  Given that, the Six Flags parks may actually get better.

Under the agreement, Cedar Fair unitholders will receive one share of common stock in the combined company for each unit owned, while Six Flags shareholders will receive 0.5800 shares of stock in the combined company for each share owned.

Cedar Fair unitholders will own approximately 51.2% of the combined company, while Six Flags shareholders will own about 48.8%.

Yeah, I saw that, but my bet is that Six Flags leadership will still rule the day, since they're leading the company despite lack of technical majority ownership.

This will be like the decline of Boeing after it merged with McDonnell Douglas.

[TheHighwayMan3561]

Minnesota's premier high school hockey event in January 2025 was just announced for Valleyfair before this merger. Now I wonder if Six Flags will nuke that.