The Interpreter Posted January 27, 2006 Share Posted January 27, 2006 http://today.reuters.com/investing/Finance...10-03_WEN8935:1 Quote Link to comment Share on other sites More sharing options...
Reclaimer Posted January 27, 2006 Share Posted January 27, 2006 Well, that's just great. Here we thought we were good after the split. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 27, 2006 Author Share Posted January 27, 2006 The language of the release is such that it would be reasonable to assume a buyer has already been rounded up and final talks are ongoing. The divestiture is set to happen the second half of this year, and the parks will continue to operate in the interim. This isn't an announcement of an ongoing effort to find a buyer, it is an announcement of a pending sale, or so it seems... Quote Link to comment Share on other sites More sharing options...
King Bowser Posted January 27, 2006 Share Posted January 27, 2006 I'm confused...whats going on?!?!? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 27, 2006 Author Share Posted January 27, 2006 We posted about the same time. Read my post right before yours. I think they have a buyer in the dock, and are about to finish up the deal... Quote Link to comment Share on other sites More sharing options...
tubaman Posted January 27, 2006 Share Posted January 27, 2006 Well who do we want to be bought by? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 27, 2006 Author Share Posted January 27, 2006 That doesn't really matter. What DOES matter is who is Paramount Parks going to be sold to... Quote Link to comment Share on other sites More sharing options...
RollerNut Posted January 27, 2006 Share Posted January 27, 2006 Cedar Fair, Cedar Fair! Sadly, that happens we will lose the Nicktoons(oh well), and possibly Scooby-Doo . Quote Link to comment Share on other sites More sharing options...
TheKlockster Posted January 27, 2006 Share Posted January 27, 2006 Most likely an Investment group of some kind. It could actually be really good for the park. They could run the park and license Paramount brands. To us, this will probably mean very little - except bigger and better rides in the future than Paramount is capable of giving us. The company will stay pretty much the same - it will just be owned by a different parent company. Look at Universal - it is owned by an investment firm - not Universal Studios. I think this can only be good news for us. Knowing you guys though you are probably going to panic... So - I would say don't worry about it - you won't see that big of a change. But go ahead and panic - not much else to do in the offseason. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 27, 2006 Author Share Posted January 27, 2006 Uh, Universal is half owned by General Electric. And what wonderful rides have they put in lately? Well? Quote Link to comment Share on other sites More sharing options...
RollerNut Posted January 27, 2006 Share Posted January 27, 2006 NBC has something to do with UStudios? Quote Link to comment Share on other sites More sharing options...
RingMaster Posted January 27, 2006 Share Posted January 27, 2006 Uh, Universal is half owned by General Electric. And what wonderful rides have they put in lately? Well? ......Revenge of the Mummy. And that's all I can think of right now. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted January 27, 2006 Author Share Posted January 27, 2006 Yep, NBC has something to do with Universal... That may be part of why that part of the company is now known as NBC Universal! Quote Link to comment Share on other sites More sharing options...
WooferBearATL Posted January 27, 2006 Share Posted January 27, 2006 I don't know but I'm actually excited about that news. I think that if we get the parks into the hands of a group that is less concerned about fads of the moment and concentrating on things that will remain timeless into the future; we will all benefit. Quote Link to comment Share on other sites More sharing options...
RollerNut Posted January 27, 2006 Share Posted January 27, 2006 I think CBS is making a stupid move because they are losing a great advertising asset. Quote Link to comment Share on other sites More sharing options...
flightoffear1996 Posted January 27, 2006 Share Posted January 27, 2006 I like the move and I really hope we get some chain or who ever that know how to put in some good coasters. That could be a few years though since Im sure Paramount has stuff planed for about a year or two down the road. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted January 27, 2006 Share Posted January 27, 2006 Well, that is very interesting news indeed. Hopefully, we won`t see any drastic changes after the sale is completed. And as others have said, hopefully this means bigger and better things for all Paramount Parks. I would imagine that what ever company or firm buys the parks, they will most likely acquire the licensing arrangements to the Viacom library, including Paramount Pictures and Nickelodeon. Why? Well with a huge demographic that visits the parks, it will still be marketing for Viacom and CBS, and IMO, in their best interest to maintain the licensing agreement. If not, the parks will have to undergo some major retheming work on rides that have already been discussed in other threads. Quote Link to comment Share on other sites More sharing options...
CoastersNSich Posted January 27, 2006 Share Posted January 27, 2006 I thought I was reading a recycled article. Well, sort of. I did hear of Viacom's intent to sell the parks, even before the split into Viacom Corp. and CBS Corp. Now CBS Corp. itself wants to sell. Who'd I want for a new owner - probably someone with the attitude of new Reds owner Bob Castellini (hopefully this guy isn't too much like Dan Snyder)! Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted January 27, 2006 Share Posted January 27, 2006 Article from CBS's web site itself: http://www.cbscorporation.com/news/prdetails.php?id=175 01.26.2006 CBS CORPORATION TO DIVEST PARAMOUNT PARKS The CBS Corporation (NYSE: CBS.A and CBS) announced today it intends to divest its Paramount Parks division. The Company indicated that numerous parties have already expressed interest in acquiring the operation, and CBS Corporation expects to complete the divestiture in the second half of 2006. Paramount Parks -- which had more than 12 million visitors in 2005 -- will remain in full operation throughout the divestiture process as it embarks on what's expected to be another successful year. Paramount Parks is a leading developer and operator of world-class theme parks and location-based attractions, entertaining more than 12 million guests annually. The division currently owns and operates five of the most popular theme parks in North America, including Paramount Canada's Wonderland (Toronto, Ontario); Paramount's Carowinds (Charlotte, N.C.); Paramount's Great America (Santa Clara, Calif.); Paramount's Kings Dominion (Richmond, Va.); and Paramount's Kings Island (Cincinnati, Ohio). The division also developed and manages the award-winning STAR TREK: The Experience at the Las Vegas Hilton (Las Vegas, Nev.) and manages Bonfante Gardens horticultural theme park (Gilroy, Calif.) and CBS Television City at the MGM Grand Hotel & Casino (Las Vegas, Nev.). CBS Corporation (NYSE: CBS.A and CBS) is a mass media company with constituent parts that reach back to the beginnings of the broadcast industry, as well as newer businesses that operate on the leading edge of the media industry. The Company, through its many and varied operations, combines broad reach with well-positioned local businesses, all of which provide it with an extensive distribution network by which it serves audiences and advertisers in all 50 states and key international markets. It has operations in virtually every field of media and entertainment, including broadcast television (CBS and UPN), cable television (Showtime), local television (CBS Television Stations), television production and syndication (CBS Paramount Television and King World), radio (CBS Radio), advertising on out-of-home media (CBS Outdoor), publishing (Simon & Schuster), theme parks (Paramount Parks), digital media (CBS Digital Media Group and CSTV Networks) and consumer products (CBS Consumer Products). For more information, log on to www.cbscorporation.com. Straight out of the horse's mouth this time... sad.. Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted January 27, 2006 Share Posted January 27, 2006 I bet it was a done deal when Siebert got out. PKIC should be thinking about a new name. Quote Link to comment Share on other sites More sharing options...
jzarley Posted January 27, 2006 Share Posted January 27, 2006 My money is still on the Blackstone Group... This certainly fits their investment profile. I agree that this is a questionable (at best) business move for CBS. There was a great article on "The Motley Fool" several weeks ago talking about what a stupid move it was for a media company to discard a captive audience of 12 million people a year... My guess is that CBS wants the real estate off their balance sheet, and the best move for them would be to sell the parks to an investment group (i.e., Blackstone), then license the media properties back to the new owners to continue operation in the parks. This give CBS an outlet, while the new owner gets to retain known media properties. Kind of the best deal for both... Keep in mind that Time-Warner hasn't owned Six Flags for a decade, yet Looney Tunes, Batman, Superman, etc. are all still going strong in their parks... I don't think there is anyway that Cedar Fair would attempt to take on an acquisition like this... A quick look at their 10K tells you what kind of debt they'd have to take on to manage a $1B+ acquisition, not to mention the operational efforts. I'll tell you one thing...if it does turn out that CF is the buyer, I'll immediately sell the units I own, because they will have lost the financial level headiness that's made them such a strong performer... (Now, a CF management contract, with someone else owning the parks is a completely different possibility... ) Quote Link to comment Share on other sites More sharing options...
Gordon Bombay Posted January 27, 2006 Share Posted January 27, 2006 Like Coaster's RZ said, its likely that whateer group is purchasing the parks will pay to use the rights from the Viacom library to still carry the themes, but will it still be called "paramount's" if they carry the viacom rights? Quote Link to comment Share on other sites More sharing options...
Outdoor Man Posted January 27, 2006 Share Posted January 27, 2006 i hear carl lindner has a few million laying around now waiting on investment. Quote Link to comment Share on other sites More sharing options...
Outdoor Man Posted January 27, 2006 Share Posted January 27, 2006 actually that's interesting. I'm sure that whoever buys the parks would get a naming rights deal for at least a few years. that seems kind of odd that CBS would want to divest a money making arm of their business. Quote Link to comment Share on other sites More sharing options...
jzarley Posted January 27, 2006 Share Posted January 27, 2006 i hear carl lindner has a few million laying around now waiting on investment. ...and a few million would buy him the Eiffel Tower . The anticipated price for the chain is at leat $1 billion if not more... Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted January 27, 2006 Share Posted January 27, 2006 I think they would want to sell to someone wanting a rights deal. I think Cedar Fair would be one that didn't want that deal. If Cedar Fair would make the acquisition I say they will be the next Six Flags. If you do the math it would be Six Flags kind of debt. Quote Link to comment Share on other sites More sharing options...
teenageninja Posted January 27, 2006 Share Posted January 27, 2006 I'm not shocked I saw this coming since they started talking about the split. Viacom was too big to manage so they split up into two divisions and apparently CBS is too lazy/careless to manage a business that makes them millions a year. I'm sure they will let PKI use the liscenses, mainly because they wouldn't have spent all that money to build NICK Universe if they were planning on selling, which they would have started the planning probably before the split. Quote Link to comment Share on other sites More sharing options...
ragerunner Posted January 27, 2006 Share Posted January 27, 2006 Since they stated in the article they have "numerous parties" interested. Does any body think that the parks may be bought by different groups. Example: PGA - Would be a nice fit for Cedar Fair and within their budget? PKI - Universal, I know that NBC appears to be not sure if they want to be in the Theme Park industry but, it would give Universal a major hold in the midwest market. I have also wondered if Busch Entertainment might not be interested in returning to the midwest after the sale of Sea World in Ohio? (both would be great for PKI) PKD - Maybe Cedar Fair, Universal? PCanada - ? Carowinds - Cedar Fair? Just a thought. Also, does anyone know who the owners are of Alton Towers and their affilated parks? Who ever buys them I think it will be good for the parks. Hopefully the new buyer or buyers are wanting to be in the theme park industry, well because they bought the parks. I will say, I do hope that Cedar Fair is not the buyer of PKI. I think they would have a monopoly going in the Ohio market and that is usually not good for consumers. Plus, which park would be their flagship park? Cedar Point or PKI which has a better attendance record? Ultimately it probably will be an investment group like jzrley said. Quote Link to comment Share on other sites More sharing options...
WooferBearATL Posted January 27, 2006 Share Posted January 27, 2006 I think CBS is making a stupid move because they are losing a great advertising asset. And that is why I think that all of the parks (and we in return) will benefit. The parks are an entity to their own. They are not and should not be a mere advertising tool for Paramount, Viacom, CBS or any other organization. Quote Link to comment Share on other sites More sharing options...
Outdoor Man Posted January 27, 2006 Share Posted January 27, 2006 Cedar Fair already has a park in PGA territory don't they? Knott's Berry Farm? Quote Link to comment Share on other sites More sharing options...
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