Is Cedar Fair wanting to buy PKI?

[jzarley]

I see Blackstone has done this before.

http://www.blackstone.com/cases/private_eq.../six_flags.html

Exactly!

Not only did Blackstone buy interest in SF, but they also own 50% of Universal Orlando. They're a major investment firm that has a history of investing in theme park real estate.

I've mentioned this over & over & over in multiple threads, but keep in mind that the mention of CF, Busch, et. al. as being contenders for purchasing the parks unit is so far only the conjecture of the author of the article in the New York Post, there has been no other collaboration from other sources. (Well, other than Snapper... Sorry--just joking with you )

And, finally, keep in mind what prompted all of these threads to begin with was that Tom McGrath has approached Viacom with a serious proposal to buy the parks unit. There's already a serious buyer (who used to run the parks, no less) waiting in the wings with some heavy hitting equity partners.

Do I think Viacom will sell? Yep...but that's not really such a big surprise. My money is still on an a major investment firm and/or REIT.

Joel

[PkiJake13]

It think if Universal gets Paramount Parks, they will turn them into an IoA type park. I really can see Kings Island turning into a IoA. I think if Cedaf Fair gets the park then we will see more coasters. But I like the direction that Viacom is leading the parks.

-Jake

[Captain Picard]

If it was Blackstone, it probably would have nothing to do with Universal. With any luck it would be a DBA Paramount Parks.

[italianchef]

I can easily see PKI being themed into a park similar to IOA.

For example:

Paramount Action Zone changes to Marvel Super Hero Island. Then the following changes would be made:

Drop Zone becomes Doctor Doom's Fearfall

Delirium becomes Storm (She is an X-man)

Son of Beast becomes Mighty Thor

Face/Off becomes Iron Man

Congo Falls becomes The Submariner

Top Gun becomes Flight of Nick Fury

Nickelodeon Central and Hanna-Barbera Land could stay the same because Universal Studios has rights to them.

We'll have to wait and see what will happen. However, my money is on the former Viacom employee buying Paramounts Parks and very little changing.

Have a great off season!

Italian Chef

[TRTR Guy]

I doubt they would change the name of Son of Beast though.

[PkiJake13]

I hope the former Viacom employee will get the parks, I really don't want anything to change. I like how the parks are now and excited to see what's to come.

-Jake

[The-Snapper]

I hope Someone else buys the park just because it will be interesting to see what other companies will do with the park!

[thejoker8388]

^I have to agree it would be interesting to see what someone else would do with the park, but hopefully they would be different in a good way.

[familyman]

If they do sell PKI and have to rename the rides I will need a park map for the first time since I was a kid.

[italianchef]

Here's my prediction - so pay attention because if I am wrong, my friends will surely make fun of me.

I predict that Paramounts Parks will go the route of Blockbuster, meaning they will be spun off as a separate company and essentially remain the same.

According to coasterbuzz.com:

"Tom McGrath, who stepped down as head of Viacom Inc.'s Paramount Enterprises last summer, has lined up investment firms Spectrum Equity Partners and GS Capital Partners, Goldman Sachs' private equity arm, to back him in his efforts to acquire the theme parks business, sources familiar with the situation said."

I believe that Mr. McGrath and his partners will purchase Paramounts Parks from Viacom and all rights to Paramount, Nickelodeon, MTV, CMT, etc. will be included in the sale price. It helps Viacom for the free advertisement and it helps Mr. McGrath's group for the theming.

That said, I believe that very little changes will occur as far as how the park is run. There is the possibility that the budgets could shrink, but one never knows. Needless to say, it'll affect full-time employees who I assume would lose their Viacom benefits in favor of a different package system. We'll have to wait and see.

Have a great weekend!

Italian Chef

[familyman]

Wow Chef I sure hope your right. You are very wise my friend!

[Captain Picard]

I think you have more than one prediction Chef.

1. They will be spun off.

2. McGrath and his partners will purchase Paramounts Parks.

I don't know if you remember us talking on the last day of the season about if someone wanted to buy they would sell.

[italianchef]

My 2 predictions are actually one. Should Paramounts Parks be sold to Mr. McGrath, they will essentially be spun off because he is almost an insider. I assume that a former high ranking employee has a cozy relationship with top management.

We'll see what happens.

Have a great weekend!

Italian Chef

[jzarley]

My 2 predictions are actually one. Should Paramounts Parks be sold to Mr. McGrath, they will essentially be spun off because he is almost an insider.  I assume that a former high ranking employee has a cozy relationship with top management.

We'll see what happens.

Have a great weekend!

Italian Chef

I agree this is a pretty good possibility. Actually, this was one of the possible scenarios I previously mentioned in another thread back in January...

http://www.pkicentral.com/forums/index.php...indpost&p=62250

Investment firms and REIT's generally don't buy things for the long haul. Their goal is usually to get in, increase the value of their investment, and get out within a few years. Usually, that exit strategy takes the form of an IPO because that's usually a good way to generate cash.

I had also mentioned in another thread/post on this topic (it seems like we've been talking about this forever ) that IF Paramount Parks were spun off as an independent entity, then a merger with Cedar Fair (or another park company) could make a lot more sense. A merger of equals with a stock swap would be a lot more attractive. That also follows the Blockbuster example...less than a year after their spin off they're attempting a merger with Hollywood Video.

None of us really know what will happen with the parks... But, we're all enjoying the speculation. It certainly helps pass the time to opening day in April!

Joel

[sswartz26]

I just joined this site and thought I would post my 2 cents. I lived in TOledo for 31 years and Cedar Point was a yearly trip for us. I also worked there. Now I live in N.Ky and have Season Passes for K.I. I can say that prices will go up if C.F. takes over PKI. There will be no great 4 pak deals on Passes and more than likely the waterpark would become a seperate admission/pass price all together.

I think it is great that PKI does everything in 1 pass and no add'l admission fee.

I dont see where it would be good for C.F. to own KI

[KIBeast]

^I don't agree that the water park would be made a separate admission. Geauga Lake does not have a separate admission, so why would they change King's Island?

[italianchef]

Truthfully, this is an intellectual exercise. None of us knows to whom and when Viacom will sell PKI (and her sisters). None of us knows the circumstances of the sale - including rights to trademarks and price. None of us knows how a new compnay would operate Kings Island. We really, really don't know. So we speculate, argue, debate, and at times insult each other. But the truth is that none of us can really predict the future.

Have a great day!

Italian Chef

[RingMaster]

chefs right. we just do this to make conversation.

just 2 put in my 2 cents here, a friend of mine said that PKI and her sisters are up for bid, with Cedar Fair, universal, and disney as the bidders. six flags would have been another bidder until they sold off all their european parks and r now going down the drain.

if universal wins, then we get to see a lot more themed attractions, but no re-naming The Beast or SOB.

if disney wins (which will be very unlikely), then expect to have the majority of the coasters and high thrill rides replaced with family-based attractions (save IJ:ST).

if Cedar Fair wins, just sit back and watch more coasters pile into the park, along with a much improved fearfest (which would probably turn into another Hallowen Haunt).

i would like 2 c Cedar Fair win, even though it kinda looks like they're working out a deal between them and Paramount parks. already the hotel company up in Cedar Point is building our new hotel down here for next year.

theres my 2 cents. enjoy!

[moore]

i really hope Cedar Fair buys at least pki b/c i want a nice Cedar Fair park in driving distance of my home. plus i want to see more rollercoasters than family rides and i think Cedar Fair will do that. I hope they buy it and put a huge coaster like MF but w/ LOTS more bunny hills and air time. It doesn't have to be as tall....but 240 is the shortest id like

[The Interpreter]

i really hope Cedar Fair buys at least pki b/c i want a nice Cedar Fair park in driving distance of my home. plus i want to see more rollercoasters than family rides and i think Cedar Fair will do that. I hope they buy it and put a huge coaster like MF but w/ LOTS more bunny hills and air time. It doesn't have to be as tall....but 240 is the shortest id like

So 230' won't do?

Sigh.

Terpy, who just HAD to

[Beast1979]

Absolutely LOVE these old topics.

[Beast1979]

Sorry for the double post but this is precious:

It would suck if Cedar Fair bought PKI. PKI runs its parks better. Besides, if you look at what happened when CF bought SFOH, they gave all the passholders new passes, but made it so Geauga Lake (what they renamed it) passholders cant get into any other Cedar Fair Parks besides Knotts Berry Farm. They also can't get into any six flags parks. If they bought PKI, it would probably be the same thing. We would no longer be able to get into any other Paramount Park, but our passes also would not be able to get us into Cedar Point.

I don't think they would shut down PKI. If they were in the business of buying the competition, and shutting it down, GL would have closed already. But I do think the park will be better under Paramount.

[coaster_junky]

Sorry for the double post but this is precious:

It would suck if Cedar Fair bought PKI. PKI runs its parks better. Besides, if you look at what happened when CF bought SFOH, they gave all the passholders new passes, but made it so Geauga Lake (what they renamed it) passholders cant get into any other Cedar Fair Parks besides Knotts Berry Farm. They also can't get into any six flags parks. If they bought PKI, it would probably be the same thing. We would no longer be able to get into any other Paramount Park, but our passes also would not be able to get us into Cedar Point.

I don't think they would shut down PKI. If they were in the business of buying the competition, and shutting it down, GL would have closed already. But I do think the park will be better under Paramount.

did they expect you to be able to get in a park free that wasn't even owned by the company you bought your pass from. that's sorta like you buy a car an expect the key to fit in whatever you want to drive.