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Cedar Fair Looking For Buyers--That Would Keep Bosses


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I will admit that, other than KI, I have only been to one other major amusement park (CP, once). However, I'm probably just sentimental, but KI just doesn't seem like a park that fits in well with an amusement park "corporation". With companies like Six Flags, I just always picture roller coasters over parking lots. However, from what I've read about Busch Gardens, it sounds like KI fits in with their business model. I just don't think of KI as an amusement park. I like the trees, grass, and fountains. To me, thats the main thing, and the rides are icing on the cake. This is probably why I avoid Action Zone so much.

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^ wow...I think someone got into the CF fan-boy Kool-Aid line twice! :P

hehe...that one really made me chuckle. Well, it was more of a deep-laugh I suppose.

I think I'm just going to go buy CF. I'm sure there is a bank somewhere that will lown me the money.

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And today the FUN stock went up over three percent on the mere prospect the company may be changing hands. Hardly a ringing endorsement of current management (yes, I know that supposedly a condition is that current management be retained...but I do NOT see that happening).

As for the Six Flags and coasters over parking lots argument versus the beauty that is current day Kings Island (!), I suggest you visit Six Flags Over Georgia or Six Flags Great Adventure and then make that same comment. The landscaping at either far excels what passes for such at Kings Island these days (but not at any of those three parks fifteen years ago or more).

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Maybe it was there way of raising stock prices! I sure hope this does not happen I have visited KI more this year than ever in my life. I am doing my part!

If it is, two words come to mind: securities fraud.

Note that the stock was already rising for no explained reason for several days before this "leak."

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Maybe it was there way of raising stock prices! I sure hope this does not happen I have visited KI more this year than ever in my life. I am doing my part!

If it is, two words come to mind: securities fraud.

Note that the stock was already rising for no explained reason for several days before this "leak."

It was a joke......Interpreter

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Could any buyer be this naieve or want to take this risk? The reason theyre selling is because they took on too much at one time, and the reason they took on too much was because of the decisions the current mangement made and now the company has problems that the current mangement has yet to fix. Typical Dick Kinzel and Cedar Fair's arrogant attitude. I think anyone considering buying the chain and thinking about keeping the current mangement should talk to those lower on the totem pole and see what they think of Cedar Fair management.

-Gordon Bombay, who is hoping that with hearing the news of CF's woe's, Fort Kinzel may once again become Fort Cooper!

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http://www.dealbreaker.com/2007/07/you_mus...ion_dollars.php

Cedar Fair, finding the rare market peak of an industry known this summer primarily for severing the limbs of small children, decided it was the perfect time to solicit bids from PE firms. Really expensive bids at a 11x cash flow multiple (which at an expected $330mm in cash flow generated this year amounts to $3.7bn). The company has a market cap of $1.6bn and debt of $1.9bn.

There is a catch. Not only do you get to dish out a ton of cash for a relatively low growth (and especially tenuous at the moment) business, but you get to retain the management team best known for not totally killing its brand through over-expansion and horrible cross-branding (the "we're better than those guys over at Six Flags" strategy, and now with a new "leave with the limbs you brought" guarantee!). The New York Post reports that Cedar Fair "quietly reached out to private equity firms to gauge their interest in a buyout on the condition that the company's management team remains in place," so quietly that shares have spiked since (and before) the announcement. Quiet reporting - does the New York Post know any other kind?

Cedar Fair bought Paramount Parks from CBS last year for $1.2bn, effectively doubling in size to a 12 amusement park, 6 water park (which are not amusing), 6 hotel owning entity. Cedar Fair owns the Cedar Point amusement park in Sandusky, Ohio, known as 'that place referred to in Tommy Boy' and the home of Cedar Point.

Shares of Cedar Fair, a stock so zany its ticker is FUN (NYSE), are up almost 3.0% in daily trading.

(The Magnum XL-200 is a roller coaster at Cedar Point)

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Here is the Motley Fools take on the story.

Like the article says this is the wrong time of year to be selling theme parks.

That article was previously posted more than three hours ago by jzarley in this very thread:

http://www.KICentral.com/forums/index.php?...st&p=165965

Sorry about that I guess I skipped over that post when I was reading the thread.

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I'm totally shocked. CF has only owned the former Paramount parks for one year! In my humble opinion, anyone who purchases the parks might not want the stipulation of keeping the management team in place.

I am seriously wondering what will happen. If CF cannot find a buyer, will it sell GL, Star Trek: The Experience, and some other properties?

Does this mean NO new rides at KI next year? Does this mean that CF does not have the money to renew the Nickelodeon license and NU will someday be Camp Snoopy?

There are lots of questions and at the moment, few answers.

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NU won't be Camp Snoopy unless Universal Features Syndicate is also paid.

:)

Do you get as tired of continually stating that CF doesn't OWN Peanuts as I do? ;)

Peanuts or Nickelodeon...either way, they're shelling out bucks for licensing.

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I guess all this is just one big bite in the @$$ of CF!!! Now, what is there mistake that we must all learn from...

CF tried to pay is debt TOO QUICK instead of investing in a 5,10, or 15 year plan!

In order for CF to shrink it's large debt, they...

-Raised prices on food and souv.

-Raised ticket prices

Now I'm only listing those two items because they are THE BIGGEST complaints (I'm guessing) of park guest. All this means to a theme park is...

-Lower attendance

-Less money spent in park

When I was at KI this past Saturday, you would not believe that amount of people that I saw "tail-gating" in the parking lot. I'd go as far to say that they leave the park to eat somewhere in Mason and then comeback!

They should have thought about this before, they are business people... and it's not the first time they've bought a "pre-owned" park! I am with others, this whole situation makes me a little "uneasy"... I hope that CF can work it out and keep the parks.

Maybe they should RELOOK at there long-term goals and plans!! -Hauntguy

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Guest kwindshawne

Here are two of the biggest complaints I hear from people...

1-the trams-and I agree on that. Some of these people are bone tired and irritable by the end of the day- a simple ride to their car would make them want to return.

2-the lack of a sit down family restaurant like we had in the early days. It was such an asset for a family to be able to end the day together which is something this world desperately needs.

We have to give the people a reason to return, and those are two things that would really make a diffference and make the guest feel appreciated.

just my thought...

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Yes this all seems strange to me. Cedar Fair was all about amusement parks. Why would they want out now? This is truly scary to me as well. I was really happy with Cedar Fair owning KI, and thought they would own KI for many many years to come. I guess this is a wait and see what happens kind of thing.

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