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BUSCH PARKS: BLACKSTONE, now what?


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It makes you wonder when an article lists Six Flags as a "serious bidder" if the reporter has the slightest clue about the industry...

As I've mentioned before, this isn't the first time that Disney has expressed an interest in Sea World. They apparently looked at it pretty seriously back in the 80s when Harcourt was selling it (Busch bought SW that time), but Eisner thought they could do a better job by building their own parks. The environment is very different today, however...first of all, the US theme park market is pretty much saturated with product. Secondly, Bob Iger has a different outlook than Eisner did...he seems much more pragmatic in his approach.

Even at $4B, BEC is still only about 1/2 much as Disney paid for Pixar. Of course, my guess is that InBev is looking for a mostly cash deal as opposed to stock.

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Six Flags simply needs to steer clear of the Busch Parks. Owning these types of parks is different than owning a spit of land to build roller coasters. The animals that these parks care for are ambassadors for their species. And Busch holds the single highest standards for animal husbandry. In my humble opinion, Six Flags could not possibly afford to keep up to these very expensive standards. And I seriously doubt that the research that these parks perform would keep up to par while under ownership of such a company. It's not just about owning rides, and the people at Six Flags need to think and rethink this ( I am sure that they are ) But they need to rethink it again, if they are seriously considering it, and come to the logical conclusion that this kind of responsibility is just too big for them.

My two cents worth....

MARLFOX.....defending that which I hold dear.

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^ there's not much worry there. SF may not even be solvent in six months, let alone considering some magical way of financing a $4B acquisition.

My point was that the author of the article must not have a clue to the current state of the industry if he/she really thinks SF is a viable bidder.

As an zoological person, though, what's your opinion of Disney in this aspect? I know they had some early issues with DAK, but overall are they pretty respected in the zoo world? (You worked at DAK for a while, correct?)

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If I were to pick a favorite, other than letting the parks slip into becoming their own company, I think that Disney would be a masterful caretaker for these animals. Walt Disney's Animal Kingdom has proven that they can take conservation issues very seriously. And A.K./Busch Parks tend to hire Animal Keepers and researchers with similar educational backgrounds, which if I may say so is somewhat different than traditional zoo's. And I don't think that anyone could dispute the fact that Disney could afford to keep the parks in their current condition, if not ( dare I say ) even be able to improve the quality of these parks. Imagine Mickey Mouse meet and greets while waiting for a Shamu show. Imagine Disney providing transportation down International Drive to SeaWorld, Aquatica, and Discovery Cove. Imagine a year master pass that would take you to Animal Kingdom, Magic Kingdom, Epcot, Disney's Hollywood Studios, SeaWorld, Aquatica, Discovery Cove, and Busch Gardens.

I don't know if this is a likely scenario, but it sounds cool. It could really put the favor in Disney's pocket with a walk in Hogwarts castle in The Wizarding World of Harry Potter, coming soon to Universal for local competition.

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I agree. Disney already has a large amount of guests at their resorts that transports them to the various parks, adding another bus stop at the resorts will be relativity simple. I questioned why Iger was cutting back so much planned projects and other cost cutting measures while the local competition in the Orlando area was forging forward with theres. Especially seeing how Orlando has seen a 14% increase in tourism this year so far, with that Disney is offering Executive buy outs to save money. Seems to me they are optimizing there cash flow. I don't know what will happen but I can see Disney doing this to help them maximize their Orlando tourism dollars and satisfying a great need to attract thrill seeker markets and the higher end tourist with Discovery Cove.

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If I were to pick a favorite, other than letting the parks slip into becoming their own company, I think that Disney would be a masterful caretaker for these animals. Walt Disney's Animal Kingdom has proven that they can take conservation issues very seriously. And A.K./Busch Parks tend to hire Animal Keepers and researchers with similar educational backgrounds, which if I may say so is somewhat different than traditional zoo's. And I don't think that anyone could dispute the fact that Disney could afford to keep the parks in their current condition, if not ( dare I say ) even be able to improve the quality of these parks. Imagine Mickey Mouse meet and greets while waiting for a Shamu show. Imagine Disney providing transportation down International Drive to SeaWorld, Aquatica, and Discovery Cove. Imagine a year master pass that would take you to Animal Kingdom, Magic Kingdom, Epcot, Disney's Hollywood Studios, SeaWorld, Aquatica, Discovery Cove, and Busch Gardens.

I don't know if this is a likely scenario, but it sounds cool. It could really put the favor in Disney's pocket with a walk in Hogwarts castle in The Wizarding World of Harry Potter, coming soon to Universal for local competition.

Those are not images as much as they are nightmares.

Disney involvement with the Busch Parks is certainly one of the signs of the Apocalypse.

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This from the same guy who said Anheuser-Busch was an American company that would never sell out to InBev....

Terpy, just sayin'

And yes, I'm still amazed.

I never would have thought it would have happened.

One thing I've noticed. Advertising for Budweiser products has decreased on television specifically and in general during sporting events.

Sponsorship by Anheuser-Busch has been down at various festivals and events around the country.

I would expect the Anheuser-Busch name and many of their products to be folded within the next 5 to 10 years.

My predictions about customer's remaining loyal to an InBev ownership remain valid.

This Bud's Not For You

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Yep:

...A-B executives want to use the broadcast to make a clear and firm statement to the world: Budweiser isn't going away.

"We've got to make sure the consumer knows the heritage of Budweiser is not changing and will remain intact," said Bob Lachky, chief creative officer and an architect of A-B's Super Bowl strategy....

http://www.stltoday.com/stltoday/business/...6B?OpenDocument

But for how long?

http://www.stltoday.com/blogzone/lager-hea...l-for-how-long/

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  • 1 month later...

Why do these reporters insist on listing SF as a potential bidder for anything? They obviously are just making an assumption due to SF's brand recognition without actually doing any real research on the business itself.

It seems like Rick Munarriz is the only business reporter who really has any genuine interest or knowledge of the industry...

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^ I was just about to ask the same thing. I don't see why any lender in their right mind would give Six Flags money to further their debt, given their history (I know, "past performance is not indicative of future results", but on the other hand "those who forget history are doomed to repeat it"), the outlook on their stock and the current market in general. And it's a company that many question its ability to survive 2009.

It's no surprise that this is coming, but I hate to see Busch get rid of their parks. Granted, I haven't been to Sea World since the mid-'80s, and the only other Busch park I've been to is Tampa in '97. But from what I've seen, and their reputation in the industry, they're great parks. And I think the interested parties listed should do a fine job in keeping that reputation... with the exception of SIX.

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What passes for insightful analysis these days:

...Rollins Professor Rick Foglesong said Thursday that selling the theme parks makes sense, because the theme park business is "not so good these days." Plus, he said, it is typical for a large corporation to sell off some parts after buying a company.

Foglesong, author of Married to the Mouse: Walt Disney's Impact on Central Florida,

said if the Belgian Brewer sells SeaWorld, it might not be a bad thing.

"If SeaWorld comes to be owned by a company that...might be someone closer to home, that would really be good," he said.

http://www.msnbc.msn.com/id/29536523/

http://www.kbmt12.com/news/local/40855102.html

I don't know which of the two is worse. Sigh. At least neither mentions Six Flags.

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Finding A Bigger Pond For Seaworld:

..With a virtual for-sale sign planted in front of Shamu Stadium, AB InBev wants out of the theme-park business — presenting a rare opening for other big tourism players to nab some premium assets.

Think about this: Universal Parks & Resorts and Busch Entertainment Corp. Together they would create a theme-park empire that could begin to rival Walt Disney World....

http://www.orlandosentinel.com/travel/attr...,4916547.column

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  • 3 weeks later...

Will AB InBev Sell Busch Gardens?

...nine months after the deal was done there's little news on when or whether the theme parks including Sea World and Busch Gardens Africa will be sold.

Last month InBev executives, who identified the parks as a potential source of cash, told investors they still hope to sell "five or six" business units this year to make a $7 billion debt payment due in November that helped bankroll the $52 billion acquisition. But the parks — which experts figure could fetch $3 billion — are not alone on the block. ...

http://www.tampabay.com/news/business/tour...ticle987405.ece

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  • 2 months later...

Could Seaworld Be Put Up For Sale?

...But there is another indication that a sale is in the works, as InBev reportedly wants to raise $7 billion through asset sales by the end of 2010.

Bruvold said a sale would not be such a bad idea for San Diego.

"That doesn't mean anything bad for San Diego. I'm thinking it'll mean good things for San Diego as things move forward," said Bruvold.

Locally, SeaWorld employs up to 3,000, and about 4 million people visit the park each year.

Experts believe a sale could mean more revenue for the region as a whole....

http://www.10news.com/news/19660928/detail.html

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  • 1 month later...
...Speculation remains that the company's entertainment division -- including Anheuser-Busch's Sea World and Busch Gardens franchises -- remains high on the "to sell" list. Considering the economic climate and the struggling theme-park industry, a qualified buyer, at least in the U.S., may be hard to find anytime soon.

The poor balance sheets of Cedar Fair (NYSE: FUN) and Great Wolf Resorts (Nasdaq: WOLF) won't support an offer. Six Flags has filed for bankruptcy protection. And the strongest of the lot, Disney (NYSE: DIS), doesn't appear to need the additional challenges of buying a competitor, especially one that has three Orlando attractions within shouting distance of Disney World....

http://www.fool.com/investing/value/2009/0...ud-for-you.aspx

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  • 2 weeks later...

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