jzarley Posted February 24, 2005 Share Posted February 24, 2005 Viacom reported financial results for Q4 and all of 2004 this morning. For FY 2004, total revenue was up 8% to $22.5 billion. However, they're posting a loss of $13B, due to writing down some of the value of their radio and outdoor advertising divisions. The Entertainment division which includes Paramount Pictures, publishing, chain of theaters, and Paramount Parks, was down 1% on the year to $4.1B. HOWEVER, they reported Paramount Park's revenue increased 9% due to increased attendance that was offset slightly by lower per capita spending. So, looks like the parks had a good year! Anytime you get 9% revenue growth in a mature business it's a good thing. Joel Quote Link to comment Share on other sites More sharing options...
familyman Posted February 24, 2005 Share Posted February 24, 2005 Paramount is building a dynasty of parks. Quote Link to comment Share on other sites More sharing options...
Fo-Shame Posted February 24, 2005 Share Posted February 24, 2005 The revamp of the waterpark helped the food service department at KI rake in alot of that extra dough. Quote Link to comment Share on other sites More sharing options...
familyman Posted February 24, 2005 Share Posted February 24, 2005 The revamp of the waterpark helped the food service department at KI rake in alot of that extra dough. Well the wait staff idea was a great idea. Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted February 25, 2005 Share Posted February 25, 2005 If you listen to the Conference Call at 23 min 35 sec into it he says they are going to sell the parks. http://phx.corporate-ir.net/phoenix.zhtml?...eventID=1000294 Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 25, 2005 Share Posted February 25, 2005 Actually, it says they are considering selling their parks because they are not a core asset. This is the second time I have heard mention of Paramount selling their parks. It was brought up as a possibility a couple of weeks ago. Unfortunatly I don`t think there are any interested buyers at this point in time for the Paramount Parks. Additionally, I believe that Paramount is finally starting to turn the parks into something special and unique from other seasonal themers. It would be ashame to loose that vision and get new owners with new ideas now. It will be interesting to see what happens. Perhaps, Paramount Parks will spin off into its own company like KECO did. But then it would lack the financial backing and possibly the Paramount licenses. Only time will tell what the future holds for Paramount Parks and how it relates to Kings Island. EDIT: Tom McGrath, a former Viacom executive, who stepped down from Paramount Enterprises last summer has approached Viacom with investment firms about acquiring Paramount Parks from Viacom. It seems as if Paramount Parks may indeed be spun off into their own company afterall. Read more here at Coasterbuzz. If you read the attached article it says that Paramount Parks will be put to auction in the next coming months and could fetch between $900 million and a billion dollars. The article also mentiones the most likely buyers (besides Tom McGrath) to be Cedar Fair and Universal. So it seems it is only a matter of time before Paramount Parks changes ownership. It will be interesting to see what happens! Quote Link to comment Share on other sites More sharing options...
TheKlockster Posted February 25, 2005 Share Posted February 25, 2005 Well what could happen? I mean no matter who buys it - it will still be here, and still be fun to go to. If Universal bought it - it would be awesome. But Cedar Fair would be cool too. I think if they bought PKI - they would either shut down PKI or close Geauga Lake. Quote Link to comment Share on other sites More sharing options...
flightoffear1996 Posted February 25, 2005 Share Posted February 25, 2005 If you listen to the Conference Call at 23 min 35 sec into it he says they are going to sell the parks. http://phx.corporate-ir.net/phoenix.zhtml?...eventID=1000294 So are they selling all the paramount parks? Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted February 25, 2005 Share Posted February 25, 2005 I would say they are but I don't know about Star Trek exp. Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted February 25, 2005 Share Posted February 25, 2005 Look at it this way: what company is strong enough to buy Paramount Parks, and would they have an interest in them? Quote Link to comment Share on other sites More sharing options...
TheKlockster Posted February 25, 2005 Share Posted February 25, 2005 Cedar Fair! OMG! I think The-Snapper was right! LOL Quote Link to comment Share on other sites More sharing options...
Vortex Posted February 25, 2005 Share Posted February 25, 2005 "The group expressed its interest to Viacom earlier this year in an attempt to preempt an auction of Paramount Parks, which is expected within the next few months." "Besides the McGrath-led team, other potential buyers for the division include amusement park operators Cedar Fair, L.P. and Universal Parks, which is partly owned by NBC Universal and Blackstone Group, as well as other private equity firms. Six Flags and Busch Entertainment Corp., a subsidiary of brewer Anheuser-Busch, are also viewed as possible but less likely buyers." Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted February 25, 2005 Share Posted February 25, 2005 I doubt it'll be Six Flags... Bush Gardens or Cedar Fair would be ok, but personally, I'd much rather see it stay with Viacom. Quote Link to comment Share on other sites More sharing options...
familyman Posted February 25, 2005 Share Posted February 25, 2005 Anything could happen but I will believe it when I see it. Quote Link to comment Share on other sites More sharing options...
jzarley Posted February 25, 2005 Author Share Posted February 25, 2005 Keep in mind the quote about "possible suitors" is from the author of the article in the New York Post, not from Viacom or any of the potentially involved companies. Dennis Spiegel, who runs one of the most successful attraction consulting companies (based in Cincinnati, BTW) had this to say in an article in a Toronto paper: ---------------------------------------------------- The operations could sell for between $800-million and $1-billion, according to industry watcher Dennis Speigel, the president of consultancy International Theme Park Services Inc. He said in an interview from his office in Cincinnati that Viacom has been shopping the division around for a couple of weeks. There are six major operators of theme parks in North America, which account for nearly 75 per cent of all theme park receipts. The other big five are under pressure to improve their own balance sheets and likely won't bid on Paramount, Mr. Speigel said. He expects one of the large private equity companies to put in an offer. “In my opinion, the way to go with this is to take it private,†he said, adding that while growth within the industry has been flat in recent years, operators have stable revenues  which large buyout firms like Kohlberg Kravis Roberts & Co., Blackstone Group and Apollo Management crave. --------------------------------------------------------------------------- You don't have to dig very far into the "other five's" balance sheets to realize what taking on a BILLION dollars worth of debt would do to them. (The other five BTW, would be Six Flags, Cedar Fair, Disney, Busch, and NBC/Universal.) One of which is already in so much debt that they probably can't even get a corporate Amex card at this point (SF); two have also said they've considered getting out of the park business all together (Busch & NBC), and the other isn't big enough to take on a BILLION dollar acquisition without leveraging all their other assets to the hilt (CF). Not to mention, Kinzel and his team have been too smart about growth and building shareholder value to risk it in a flashy move like this. HOWEVER--if Paramount Parks was spun off into an independent company (like Blockbuster was), I guess I could see a situation where the new company and Cedar Fair could merge (as equals) to form a new combined company. It appears that Paramount has a pretty strong management team in Charlotte, and Kinzel is retiring in 2007, but no sucessor has yet been named. Hmmmmm..... But in probability, as I said a few weeks ago...my prediction would be a sale to a large equity firm or REIT, who'll license the media properties from Viacom. That's the win/win situation for everyone... Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted February 25, 2005 Share Posted February 25, 2005 Weeks ago when we was guessing what it would or may sell for we was correct. Quote Link to comment Share on other sites More sharing options...
Ben Posted February 25, 2005 Share Posted February 25, 2005 I wonder if they really will sell them. Quote Link to comment Share on other sites More sharing options...
flightoffear1996 Posted February 25, 2005 Share Posted February 25, 2005 I bet the snapper was right and everyone bashed him when he mentioned it. Quote Link to comment Share on other sites More sharing options...
The-Snapper Posted February 25, 2005 Share Posted February 25, 2005 Cedar Fair! OMG! I think The-Snapper was right! LOL Wait u actually believe me now??? Man its about darn time! LOL Quote Link to comment Share on other sites More sharing options...
LongLiveBEAST Posted February 25, 2005 Share Posted February 25, 2005 I was his partner in crime about that rumor. Everyone bashed him when he said it was true. Don't doubt people before thinking about where they work and what they see. Quote Link to comment Share on other sites More sharing options...
The-Snapper Posted February 25, 2005 Share Posted February 25, 2005 Cedar Fair will do a great job with the park IF they buy the park. I dont think they will buy all of the parks though. Maybe PKI and PGA and PKI becasue there isn any Cedar Fair parks in that area. AND PLEASE people quit sayin ohh Cedar Fair isnt gonna buy PKI becaus ethey own GL and Cp. Because everyone was doubting that Cedar Fair would buy geauga Lake and they did. So anything is possible. Plus pki is far enough away from the point and the lake so it wouldnt have to compete with those parks!!!! Quote Link to comment Share on other sites More sharing options...
jzarley Posted February 25, 2005 Author Share Posted February 25, 2005 Well, I won't go into the whole thing again about the $1B price tag, and CF's most recent balance sheet in their Q3 10Q filing. (I guess people either understand how to read a financial statement or they don't...) But, let's pretend that Viacom is dead set to get rid of the parks and can't find anyone to buy the whole chain, so they decide to sell them park by park. If you were Dick Kinzel, would you want to buy PKI, or would you rather buy Wonderland (presence in Canada outside one of the largest cities in North America), Carowinds (first CF presence in the southeast), or maybe Great America (presence in Northern CA to complement your Southern CA parks)? Personally, I think any of the three of those parks would be a better fit for CF than PKI. One of the large equity groups that was mentioned in the article that could be a possible buyer was the Blackstone Group. Guess what else they already own? A 50% stake in Universal Orlando (NBC/Universal owns the other half...) Quote Link to comment Share on other sites More sharing options...
Delirium_Guy Posted February 25, 2005 Share Posted February 25, 2005 Well what could happen? I mean no matter who buys it - it will still be here, and still be fun to go to. If Universal bought it - it would be awesome. But Cedar Fair would be cool too. I think if they bought PKI - they would either shut down PKI or close Geauga Lake. There would be no need to do any of those things. Cedar Fair is pumping money into Geauga with this huge water park expansion. The vision is to basically go back to the old days as Geauga Lake. Back in the day, when Geauga Lake was a family destination, they heavily advertised in the Pittsburgh area. There was a big draw there for them. Then the battle between PKI and CP, I'm sorry, but neither is a direct competitor of one another. All three parks have operated for years in the state with no problem. I think it'll certainly continue that way. - Todd, looking forward to seeing the turn around of Geauga Lake Quote Link to comment Share on other sites More sharing options...
LongLiveTheSmurfRide Posted February 25, 2005 Share Posted February 25, 2005 I see this all as a positive if one of the two buy PKI. If Universal buys it, perhaps they'll use their insane attention to detail to really make it a top notch theme park. And if Cedar Fair buys it, perhaps they'll toss out the theming and focus more on the rides themselves and how to make them fun, not how they fit into a special type of theming. Either way I'd say we win. That is unless Six Flags buy them. Quote Link to comment Share on other sites More sharing options...
flightoffear1996 Posted February 25, 2005 Share Posted February 25, 2005 Cedar Fair! OMG! I think The-Snapper was right! LOL Wait u actually believe me now??? Man its about darn time! LOL I was with you too.! Quote Link to comment Share on other sites More sharing options...
Ben Posted February 25, 2005 Share Posted February 25, 2005 Well, I won't go into the whole thing again about the $1B price tag, and CF's most recent balance sheet in their Q3 10Q filing. (I guess people either understand how to read a financial statement or they don't...) But, let's pretend that Viacom is dead set to get rid of the parks and can't find anyone to buy the whole chain, so they decide to sell them park by park. If you were Dick Kinzel, would you want to buy PKI, or would you rather buy Wonderland (presence in Canada outside one of the largest cities in North America), Carowinds (first CF presence in the southeast), or maybe Great America (presence in Northern CA to complement your Southern CA parks)? Personally, I think any of the three of those parks would be a better fit for CF than PKI. One of the large equity groups that was mentioned in the article that could be a possible buyer was the Blackstone Group. Guess what else they already own? A 50% stake in Universal Orlando (NBC/Universal owns the other half...) You make a good point. But in a lot of ways, PKI is the best Paramount Park, and if put up for sale, CF would most defiantly go after it. Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted February 25, 2005 Share Posted February 25, 2005 They may want it but like he said they probably can't pay the 1B price tag. Quote Link to comment Share on other sites More sharing options...
LongLiveTheSmurfRide Posted February 25, 2005 Share Posted February 25, 2005 Can't they put it on layaway? Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted February 25, 2005 Share Posted February 25, 2005 Maybe Dick Kinzel could buy it up and make CF the next Six Flags by 07. I can see it now CF Kings Island season pass 120 dollars and only good at Kings Island. Quote Link to comment Share on other sites More sharing options...
Vortex Posted February 26, 2005 Share Posted February 26, 2005 I think everyone is looking right now at the different parks if they do got to action. Quote Link to comment Share on other sites More sharing options...
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