Guest rcfreak339 Posted December 17, 2009 Posted December 17, 2009 Its seems like a entertainment company to me...Owning a cruise line and a Hotel & Casino. So I wouldn't say you should be worried but this will be interesting.
The Interpreter Posted December 17, 2009 Posted December 17, 2009 http://vsinvestor.com/2009/12/cedar-fair-getting-lbo-fun.html
Diamondback FOF Posted December 17, 2009 Posted December 17, 2009 I find it interesting that an online store was just added with this possible sale. Unless, it is like Winterfest being back in 2005.
The Interpreter Posted December 17, 2009 Posted December 17, 2009 Almost certainly nothing more than a coincidence in that case. I doubt very many, even inside Cedar Fair's upper sanctum, knew this was coming.
goofywdw Posted December 17, 2009 Posted December 17, 2009 http://vsinvestor.co...ng-lbo-fun.html What does all of that mean? Is it good?
The Interpreter Posted December 17, 2009 Posted December 17, 2009 The only real answer at this point is this: It's too early to tell. And, since we will never know what all the other alternatives to the future were/are, we may never know.
gigacoaster2k Posted December 17, 2009 Posted December 17, 2009 Kind of not shocked, but I didn't see it coming this soon. Who the heck is Apollo Mgt anyway? Glad I didn't buy my CF platinum pass yet. I hope these people know what they are doing.
HTCO Posted December 17, 2009 Posted December 17, 2009 Apollo Management L.P. is a private equity investment firm, founded in 1990 by former Drexel Burnham Lambert banker, Leon Black.[2] The firm specializes in leveraged buyout transactions and purchases of distressed securities involving corporate restructuring, special situations and industry consolidations. http://en.wikipedia.org/wiki/Apollo_Management Just in case some were wondering who the heck Apollo Management was.
The Interpreter Posted December 17, 2009 Posted December 17, 2009 And what, you might ask, is a leveraged buyout? One where the purchase is largely financed with the seller's assets...in this case the parks, cash on hand, etc. Make no mistake about it, this is a case of a company attempting to buy Cedar Fair at a relatively fire sale price, make some improvements in assets, structure, and costs, and sell it...either one asset at a time or as a whole, for a profit.
HTCO Posted December 17, 2009 Posted December 17, 2009 Are you saying what Apollo Management is buying CF so they can flip it and sell it back. Kind of like when someone flips a house?
thekidd33 Posted December 17, 2009 Posted December 17, 2009 Are you saying what Apollo Management is buying CF so they can flip it and sell it back. Kind of like when someone flips a house? Very similar, yes.
The Interpreter Posted December 17, 2009 Posted December 17, 2009 Except the buyer will almost certainly be someone other than Cedar Fair LP.
CoastersRZ Posted December 17, 2009 Posted December 17, 2009 Yes, that is what he is saying. Generally, private equity firms try to buy companies that seem to be a bargain to acquire, they make changes to improve their value and then sell them at a higher price, thus generating profits. That is the same concept as flipping a house. The interesting thing will be what happens to the units (I assume they will be purchased at a set price?), and how Apollo exactly finances this acquisition. And as I said before, we likely won`t see any immediate changes to park operations. And the true impact of this news may not be felt for several years. I mean just look at how people think of the changes that Cedar Fair has made to Kings Island thus far. They have only owned the park now for three and a half years.
Tomkatt7 Posted December 17, 2009 Posted December 17, 2009 I hate to be the first one to beat a dead horse, but............ I wonder what new ownership will mean for the future of SoB?
Diamondback FOF Posted December 17, 2009 Posted December 17, 2009 Maybe this is why CF said a decision will be made as to SOB during the offseason. They figured they'd let the new owners deal with it.
UnrealNightmare Posted December 17, 2009 Posted December 17, 2009 I was also wondering that very same thing Tomkatt...
windshawne Posted December 17, 2009 Posted December 17, 2009 Yes, that is what he is saying. Generally, private equity firms try to buy companies that seem to be a bargain to acquire, they make changes to improve their value and then sell them at a higher price, thus generating profits. That is the same concept as flipping a house. The interesting thing will be what happens to the units (I assume they will be purchased at a set price?), and how Apollo exactly finances this acquisition. And as I said before, we likely won`t see any immediate changes to park operations. And the true impact of this news may not be felt for several years. I mean just look at how people think of the changes that Cedar Fair has made to Kings Island thus far. They have only owned the park now for three and a half years. Working for a company that was bought and I assume to be sold again in 5 years (at our health and high personal costs for the big boys profit) I dont know if this will be a good thing or not. All this buying and flipping by corporations is disgusting. Cedar Fair bit off more than they could chew buying the parks, but at least it isn't Blackstone making the offer. Did I read that right that Apollo was behind such companies as Linens N Things and Harrah's? There's your sign.
The Interpreter Posted December 17, 2009 Posted December 17, 2009 Maybe this is why CF said a decision will be made as to SOB during the offseason. They figured they'd let the new owners deal with it. I doubt that...seriously. Those who decide the fate of things like that are not the same people as those who decide the fate of the company as a whole, except in the most indirect of ways. As I have said previously in this thread, I doubt many at Sandusky saw this coming or knew it was. And this may still not happen. It could be just rumor, though that is unlikely. The deal could fall through. There could be a 'white knight' come in with a higher bid. Or a creditor could somehow force a technical default and a bankruptcy (See Six Flags, where just exactly that happened).
UnrealNightmare Posted December 17, 2009 Posted December 17, 2009 I don't see why you quoted me there?
The Interpreter Posted December 17, 2009 Posted December 17, 2009 Why not? You were wondering the same thing, you said! Oh, wait... Goes to fix... Please accept my apologies...too many boards, too many posts, not enough time. Terpy, who needs more fingers tonight...and time.
CoastersRZ Posted December 17, 2009 Posted December 17, 2009 Why are you glad that its not Blackstone making the offer for Cedar Fair? By all accounts I`ve heard, they have a pretty much hands off approach to the parks and entertainment venues they own. Just look at Sea World Parks and Entertainment, the former Busch Entertainment Co. which Blackstone acquired from Busch InBev. And yes, Apollo ad an interest in Linen `N` Things and Harrah`s. But those companies likely had issues before Apollo purchased them. Remember that a private equity firm buys struggling companies because they are looking to buy them on the cheap, improve their value and sell them at a higher cost. Just like with flipping homes, not every project or company is successful. Look at the brighter side of things. Apollo owns AMC Theaters, which last time I went to Newport on the Levee, seemed to be doing really well. And they also own Norwegian Cruise Lines, so they have some experience owning entertainment and hospitality ventures.
UnrealNightmare Posted December 17, 2009 Posted December 17, 2009 I was wondering the same thing as Tomkatt not DiamondbackFOF.
HTCO Posted December 17, 2009 Posted December 17, 2009 I hate to be the first one to beat a dead horse, but............ I wonder what new ownership will mean for the future of SoB? Sorry. Just had to
The Interpreter Posted December 17, 2009 Posted December 17, 2009 Much like throwing a dog off a 50 foot high bridge is bad... Terpy, who just HAD to...
HTCO Posted December 17, 2009 Posted December 17, 2009 Much like throwing a dog off a 50 foot high bridge is bad... Terpy, who just HAD to... Like ya terpy, but a little to early for a joke like that. I'm still trying to get over that whole thing.
windshawne Posted December 17, 2009 Posted December 17, 2009 Why are you glad that its not Blackstone making the offer for Cedar Fair? By all accounts I`ve heard, they have a pretty much hands off approach to the parks and entertainment venues they own. Just look at Sea World Parks and Entertainment, the former Busch Entertainment Co. which Blackstone acquired from Busch InBev. And yes, Apollo ad an interest in Linen `N` Things and Harrah`s. But those companies likely had issues before Apollo purchased them. Remember that a private equity firm buys struggling companies because they are looking to buy them on the cheap, improve their value and sell them at a higher cost. Just like with flipping homes, not every project or company is successful. Look at the brighter side of things. Apollo owns AMC Theaters, which last time I went to Newport on the Levee, seemed to be doing really well. And they also own Norwegian Cruise Lines, so they have some experience owning entertainment and hospitality ventures. Blackstone bought the company I work for. Our IT department, and as of Monday our billing dept is now based in India, where they don't speak good English and where they dont have a snowball's chance of understanding a complicated medical billing system, where we struggle with it onshore. They are also centralizing our operations and laying people off right and left nationwide. Today we received an email to send the calls over there, and only if elevated to Level II can they be transferred to America. To add insult to injury, they reps over there have the audacity to say they have an American name. Bull****. This is the reason our jobs are all gone. You gotta look at the big picture-I never understood all this when I was younger, but boy I do now. I dont verbally abuse the reps I am forced to talk with, but I have a lot of anger toward firms like Blackstone for creating situations like this.
TylerRider Posted December 17, 2009 Posted December 17, 2009 Looks like Kinzel may have Saved his last nickel!
BavarianBeatle Posted December 17, 2009 Posted December 17, 2009 Well, this should be interesting! It could be very bad, very good or neither of the above. Time will tell. I must admit that I do have some degree of fear of the unknown.
windshawne Posted December 17, 2009 Posted December 17, 2009 Well, this should be interesting! It could be very bad, very good or neither of the above. Time will tell. I must admit that I do have some degree of fear of the unknown. Me too.
UnrealNightmare Posted December 17, 2009 Posted December 17, 2009 I think either way this goes there is still fear of the unknown. There always will be... That's the nature of life.
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