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Article: Six Flags could be potential bidder for Cedar Fair, analyst says (February, 2022)


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Yikes.  I honestly haven’t take a deep dive on a CF earnings report in a few quarters but this is super worrisome to me on a couple different levels.

First, if CF merges with either Sea World or Six Flags it would create the first theme park mega conglomerate. There are no other models and such an unprecedented move would be an incredible risk, especially because the world just entered it’s third calendar  year of the pandemic.  In 2021 parks suffered WAY too many accidents. Being closed for over a year, national labor shortages, and humans forgetting how to be human out in the world is what I expect contributed to this. And I do not want to see that happen again. Operations at every chain I have read about have had lots of stumbles while learning how to work through the pandemic successfully. Some parks and chains have handled them more gracefully than others. That being said, this isn’t the correct time to try and make a Voltron-esque park chain. 


Secondly, could this possibly be a pumping scheme? Every time these offers are made, each company gets a bump up in their stock/unit price. Kind of like Elon tweeting about DOGECOIN or WallStreetBets memes. 
 

The first scenario is irresponsible. The second option is reprehensible and very illegal.  

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^If you are thinking long term strategy, it would make sense.  If a chain is in a vulnerable position (who knows where any of them are right now) and with low interest rates, it would be a great time to buy.

When FUN bought the Paramount Parks, the economy would end up going into a terrible shape.  But long term, it has been a boom for FUN.  I'm not sure how much of the debt they still carry from that, but any debt that FUN has would go to the new company.  

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Seems like a pointless article. Yes, Six Flags is in the same industry and previously tried to acquire CF. So yes they are always a potential predator for CF.  But hey maybe Hershey wants to expand and have 11 more candy-themed parks. Or maybe Herschend wants a merger. Or maybe some chinese company wants to come in.

 

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On 2/9/2022 at 7:57 PM, DoomPlague said:

Seems like a pointless article. Yes, Six Flags is in the same industry and previously tried to acquire CF. So yes they are always a potential predator for CF.  But hey maybe Hershey wants to expand and have 11 more candy-themed parks. Or maybe Herschend wants a merger. Or maybe some chinese company wants to come in.

 

Or ViacomCBS wants back in. 
 

I think that’s a real, real possibility. Not necessarily to buy Cedar Fair. SeaWorld would be a good candidate for that. 

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12 hours ago, silver2005 said:

I think Viacom tried several times to get their own Universal Studios style park in Europe to no avail.

It was in China. That was what was ironic. They wanted out of the theme park business because it was mature in the US but simultaneously dropping $3 billion proposals for ground-up parks in China. 

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6 hours ago, BeeastFarmer said:

Maybe Six Flags could be preparing itself for divestment.  If it put itself up for sale, FUN and SEAS could pick parks to add (ie  FUN gets Fiesta, SEAS gets Georgia,etc).  Probably not likely, but the earnings reports will be interesting.

If FUN and SEAS were to team up, buy the company and split it that would be incredibly unique. It would be one for the history books.

I think SIX will be bought within the next 10 years, but it will be a leveraged buyout by an equity firm. My guess would be Blackstone. 

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Or, there is a leveraged buyout and the company splits the company up.

A scenario could unfold like Servicemaster went through:

Company is bought out by private equity.

Private equity sells off smaller pieces that are not profitable or not as profitable (they sold off ARS, Trugreen LandCare etc)

Company is lean and mean.

One division is doing very well (Terminix) and has great growth.  TruGreen Lawncare, for the longest time the biggest unit of the company, faces challlenges and is sold off.

Company decides all other units are a distraction and sells them off, leaving only Terminix.  Company sheds the Servicemaster name as the spun off divisions are now competition and is now just Terminix.

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