Another Cedar Fair / Six Flags merger rumor (Reuters)

[BoddaH1994]

https://www.reuters.com/markets/deals/cedar-fair-explores-merger-with-six-flags-sources-2023-11-01/

[CoastersRZ]

Interesting.

[Orion742]

30 minutes ago, BoddaH1994 said:

https://www.reuters.com/markets/deals/cedar-fair-explores-merger-with-six-flags-sources-2023-11-01/

I saw this a few minutes ago. I am really skeptical. They have such different business directions. Unless SF and CF come together to create the same mindset then it might work. If this goes through, we may see the return of Intamin and RMC.

[DiamondbackFan]

Lol, imagine a future where Action Zone becomes DC Universe and Banshee is rethemed to Batman.

Edit: Also, Cedar Fair's earnings call is tomorrow.

[Benjamin22]

Wouldn’t surprise me if it actually went through this time, Cedar Fair is a shell of its former self and this could maybe give the chain an opportunity to course correct with a new stronger company.

[CoasterJack]

As a Cedar Fair shareholder, this does not excite me... However I am a bit skeptical of this going through myself.

 

The Six Flags earnings call is next week too, so it makes me curious if this is true, did one company in particular initiate the conversation? Also, personally, I don't see this merger being a good thing. One on side, yay my pass gets me into more parks. But on the other side, especially recently, the strategy of the companies has been so different, and less competition means higher prices for us potentially. Also that's a lot of regional parks, my fear is some will receive less attention or perhaps some will be sold off.

 

However, if this did go through, would it be an equal merger, or would it be one company assuming the name of another. Too much unknown at this time, but this keeps appearing every couple seasons now, which makes me think one company is gonna go at some point or another.

[WoodVengeance]

28 minutes ago, Orion742 said:

I saw this a few minutes ago. I am really skeptical. They have such different business directions. Unless SF and CF come together to create the same mindset then it might work. If this goes through, we may see the return of Intamin and RMC.

Here we go again...

[Tr0y]

Their love for Caveat Emptor they might as well be Six Flags.

[jzarley]

Personally, I think the SEAS offer to acquire Cedar Fair in 2022 would have been a better overall fit for everyone (culturally and otherwise). But, then again—I’m partial to SEAS, so maybe I’m a bit biased.

If the SIX/FUN “merger” (I’m assuming SIX is actually the acquirer again) happens this time it will interesting to see how things shake out. It’s not unusual for a merger like this to result in some properties put on the market (to help offset the debt taken on for the acquisition. Both SEAS and Merlin have expressed interest in expanding their North American presence if the right parks would become available, so I could see some park “flag shuffling” (pun kind of intended) going forward.

[Tr0y]

13 minutes ago, jzarley said:

Personally, I think the SEAS offer to acquire Cedar Fair in 2022 would have been a better overall fit for everyone (culturally and otherwise). But, then again—I’m partial to SEAS, so maybe I’m a bit biased.

If the SIX/FUN “merger” (I’m assuming SIX is actually the acquirer again) happens this time it will interesting to see how things shake out. It’s not unusual for a merger like this to result in some properties put on the market (to help offset the debt taken on for the acquisition. Both SEAS and Merlin have expressed interest in expanding their North American presence if the right parks would become available, so I could see some park “flag shuffling” (pun kind of intended) going forward.

We could only hope if this “merger” did happen, that Kings Island is to be sold to Herschend Entertainment and or SEAS. 

[Taylor.B03]

What a strange timeline we live in. If this is true (And goes through), I would expect an offload of parks. Most specifically, more six flags parks than Cedar Fair parks. I just don't see how such a large company would be able to operate as the profits from the big parks would need to be spread thinner throughout the massive chain of lower to mid tier parks. I would hope that six flags ip would NOT be spread to any top tier Cedar Fair parks. The day I see "Batman the ride" at Kings Island would be the day I die inside. Despite the recent efforts to strengthen the six flags brand, they will forever have scars through their overuse of ip. 

 

I will be clear however: 

I don't see how this would be a good thing for either company. SEAS, FUN, and SIX are the 3 big public companies that essentially manage the majority of reginal parks in the US. Taking that down to 2, being SEAS and SIX+FUN, it would create a less competitive environment. It also (like mexico currently), would create a only 1 chain operator scenario in canada. 

[BoddaH1994]

14 minutes ago, Tr0y said:

We could only hope if this “merger” did happen, that Kings Island is to be sold to Herschend Entertainment and or SEAS. 

Certainly not out of the question. On my pod a few weeks ago, Joel Manby admitted that HFE threw their hat in the ring to purchase Paramount. I’ve actually heard of rumor attempts for them to buy KI as late as 2014. HFE clearly wants KI, they would just need it peeled off in order to afford it.

[CoasterJack]

Plot-twist: Paramount/Viacom, now whole again as Paramount Global reacquires the Paramount Parks, launching a new era of movie magic

[westcoaster]

Lets hope its for the best and the expenditures keep happening. 

 

[Orion742]

39 minutes ago, BoddaH1994 said:

Certainly not out of the question. On my pod a few weeks ago, Joel Manby admitted that HFE threw their hat in the ring to purchase Paramount. I’ve actually heard of rumor attempts for them to buy KI as late as 2014. HFE clearly wants KI, they would just need it peeled off in order to afford it.

I’m on board with HFE buying KI. They run SDC and Dollywood do well. Plus that would open the door to more Vekoma and maybe even RMC and Mack. I don’t think they would raise prices insanely high because KI is not that type of park. Plus Hershend owns Kentucky Kingdom and they charge 35 dollar day tickets.

[Imperial79]

Wow I hope this does not happen. I am for HFE buying KI also or SEAS and CF merging but not for this at all. 

[Tr0y]

They’ve been preparing for this for a while. No wonder Ouimet got voted out.

[SonofBaconator]

While I’m not for this, I’m personally not against this if it is done right. In my opinion, some Six Flags parks are essentially Cedar Fair parks already: Six Flags Great America and Fiesta Texas for example. If you take a SEAS approach where you split your brands, it would work…SEAS operates Sea World, Busch Gardens, and Sesame Place. So with that regard, some Six Flags parks would remain Six Flags while others would adopt a Cedar Fair mind set with individualized identities. This is all just a scenario but I don’t think it would be terrible.
 

Let me be straight, I wouldn’t want Six Flags to touch any current Cedar Fair property, it would be the other way around where Cedar Fair is influencing Six Flags- I don’t want to see The Bat become Batman: The Ride. 

[Orion742]

35 minutes ago, Tr0y said:

They’ve been preparing for this for a while. No wonder Ouimet got voted out.

Stop. This is going to haunt me for the rest of my life lol. Even worse. Six Flags Mason Ohio.

I can’t remember which source it was but I saw them say in the article that if this deal goes through it could be announced at tomorrow morning’s earnings call. We’ll have to see if that’s true.

8 minutes ago, SonofBaconator said:

While I’m not for this, I’m personally not against this if it is done right. In my opinion, some Six Flags parks are essentially Cedar Fair parks already: Six Flags Great America and Fiesta Texas for example. If you take a SEAS approach where you split your brands, it would work…SEAS operates Sea World, Busch Gardens, and Sesame Place. So with that regard, some Six Flags parks would remain Six Flags while others would adopt a Cedar Fair mind set with individualized identities. This is all just a scenario but I don’t think it would be terrible.
 

Let me be straight, I wouldn’t want Six Flags to touch any current Cedar Fair property, it would be the other way around where Cedar Fair is influencing Six Flags- I don’t want to see The Bat become Batman: The Ride. 

I 100% agree. If it’s more CF directed deal then I’m all for it. But if it’s more Six Flags then I’m against it all the way. 

 

[SonofBaconator]

Just now, Orion742 said:

I 100% agree. If it’s more CF directed deal then I’m all for it. But if it’s more Six Flags then I’m against it all the way.

There would be liquidations for sure. I’m not confident the smaller Six Flags parks like America would survive. 

[DiamondbackFan]

I could see some of the less desirable parks and some of the debt being transferred to a new spinoff company that existing shareholders would own stock in.

[rhyano]

I don't think this would be a good thing for either chain, either way I certainly don't think this would happen but I guess I'll see tomorrow before the earnings call.

[Captain Nemo]

Hmm, perhaps it’s not per say a merger but more of a shuffling of parks.

[SonofBaconator]

10 minutes ago, Captain Nemo said:

Hmm, perhaps it’s not per se a merger but more of a shuffling of parks.

 I had thought about this too…instead of Kings Dominion would it be Six Flags Dominion? Instead of Six Flags New England, would it go back to Lakeside? Fiesta Texas?

[Kenban]

I have my doubts, not that there is no discussions but that Cedar Fair would agree to do it.  I suspect it was Six Flags who started the conversations.  Also I suspect Six Flags would need permission from some third parties, for instance they don’t own 100% of some of the legacy parks like Georgia and Texas.

If this gets serious I could see SEAS making another attempt at purchasing Cedar Fair.

[nickp1991]

Cedar Fair is bound to take better care of the existing parks in the Six Flags portfolio

[Orion-XL200]

5 hours ago, Tr0y said:

They’ve been preparing for this for a while. No wonder Ouimet got voted out.

STOPPPPPP! This had me cackling! 

[rlentless]

Maybe this has been in the works for awhile . . the reason for all maintenance, staff, and ride hours cuts.  To make the bottom line look better for a merger or takeover. 

[KI Guy]

I get the feeling it's going to happen this time.

I don't see any potential upside for Kings Island fans whether it's Six Flags buying Cedar Fair or vice versa.

[Oldiesmann]

If this actually goes through, it could make whatever the equivalent of a Platinum Pass ends up being quite valuable in some parts of the country:
Knotts is an hour from Magic Mountain
Dorney is within 5 hours of four different Six Flags parks (counting Darien Lake)
Darien Lake is three and a half hours from Cleveland and two and a half hours from Canada's Wonderland (though I don't know how willing someone would be to drive across the border on a regular basis)
Carowinds is 4 hours from Six Flags Over Georgia
Worlds of Fun is 4 hours from Six Flags St Louis