Cedar Fair and Six Flags Merger - 11/2/2023
The news broke this morning that Cedar Fair and Six Flags were entering into a proposed merger of equals. At first,
I just thought it was a rumor or internet clickbait. But as the day went on, this looked like it was a legitimate
news story.
A few years ago, Six Flags made it public that they were trying to buy Cedar Fair. The plan was bold, outlandish,
and no one took it seriously. In fact, Cedar Fair issued a stern press release a few days later clearly killing the deal
before it even got off the ground. And today I was thinking that this might be the same situation.
As I read through more of the details of what the proposal entails, it might not be such a bad idea after all. Several
small hints are in the deal that would allow Cedar Fair to be the primary party in the merger. They would have 51%
control in the new company. The new company will maintain Cedar Fair's already existing stock symbol FUN and the
corporate offices will remain in Sandusky and Charlotte. Although the new company will use the Six Flags name for the
new venture.
I recognize that the Six Flags name is more well-known with the general public, but they also have a history of bankruptcy
and a bad reputation for park operations. Having a recognizable name isn't all it is cracked up to be, just look at
Enron, Blockbuster, and Lehman Brothers.
At the end of the day, I guess I'm not really upset about this proposal. And maybe I should be hopeful that my future
season passes will be expanded. Most importantly, I hope that Cedar Fair will improve the ride operations at the Six
Flags parks.
Previous | Blog list | Next
|
