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CF Buys PP - Conference Call Notes


BoddaH1994
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Here are some notes from the 1:00 conference call:

Cedar Fair will own 12 properties after this deal.

The total will be 25million guests for the chain.

The cost of the parks was 1.24 billion dollars.

Will the arms race continue between CP and PKI?

-They are marketed seperately, so they don't see the "high thrills" vs. "family fun" being a problem.

The license for Nickelodeon will last for another 4 years.

The Paramount themes are licensed up to 10 years, but they're not sure if they're going to use them after this year.

Cross-marketing is possible, but Kinzel had to remind peopel (repeatedly) that the parks are 5 hours apparrt.

There will be no changes at all in the operating schedules for the Paramount Parks for this year.

CF intends to "cross-incorperate" great ideas that were successful for both parks.

CF intends to keep PP up to the same quality that they've had in past years.

2007 Capital and additions are already in place and CF will honor PP's commitements, although we know there will be no major attractions added over $20 million.

The concept of Winterfest will be "Looked at" and determined whether it'll be back.

Cedar Fair LLC, will likely not expand into other parks outside of this deal for 3 or 4 for years.

This deal was awarded to CF late last night and voted on by CBS this morning.

Wonderland will be CF's first investment outside of the USA.

Job cuts will be "looked at" after the deal closing.

This deal will have no immediate effect on Geauga Lake.

CBS will retain its stock in the Great Wolf Lodge.

CF now owns 4 parks that gross more than 3 million:

PKI

PCW

CP

KBF

CF plans to keep up Paramount's safety record.

CP's marketing range is mainly Detriot, Cleveland, Toledo while PKI's is mainly to the south.

Sorry if not all makes sense, I'm trying to do this quickly! rolleyes.gif

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I kind of got the vibe that Winterfest will meet the axe, as with the Paramount movie themes...

Just my feeling...

I wonder if they will feel out winterfest for another season... Although its not that hard to refund the money from advance ticket purchases. Time will tell ...

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Starting in 2007, I see them probably keeping the Paramount themes on rides, at least for a temporary transition. It might be difficult to make rides Italian Job or Tomb Raider generic. However, I do see the park's name reverting back to "Kings Island." I hope WinterFest returns, but if attendance is too low at this year's event, Cedar Fair might axe it aftewards. Keeping the Nickelodeon licensing is great - I like Peanuts, but doing away with Nick Universe after one year just sounds wrong!

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I think it WAS kind of rushed. A deal was only struck last night, though a handshake agreement had been reached about a week earlier.

Then there was the little matter of Kinzel telling the Toledo Blade that Cedar Fair was interested in acquiring Kings Island, before any public announcement.

I bet the lawyers were squirming over that one, and that it accelerated an announcement.

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If you think there was a frenzy when Cedar Fair bought Geuaga Lake from Six Flags in March 2004 wasn't frenzied enough....

Get ready for FIVE parks. All BIGGER than Geauga!

Not to mention that the parks are open while this goes on. I know that there won't be any physical changes this season, but this is downright interesting.

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It will be interesting if they drop the Paramount theming. They can make the Italian Job just some kind of car theme. But Tomb Raider will be pretty tricky. They'd have to axe the props from the movie, the whole pre-show movie and the recordings mentioning Lara Croft. But I think the pros outweigh the cons.

I never thought PKI was really that great at doing theming and specifically keeping it up. They were always trying to be like a Universal calibur theme park, and they just didn't have the staff or resources to keep with that level of quality. Perhaps now that they'll just be Kings Island (that's so cool) maybe they will focus more spending on a great ride, and not put so much money into the theming.

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Im am so excited about this move!!! I honestly think that this is what exactly the PP chain needs! A good chain that actually cares about the park and Wants to do something big with the parks! Finally PP will get the attention they actually deserve!! Id expect to see some major rides popping up at the 5 PP in the next few years!

And those who are upset about this just ask your self what has PP put into thier parks in the last few years?? What NU cost 3 million, BB cost 2 million, and IJST cost 13 million! Wow thats alot of money! Also the parks have become very dirty and trashy! So this is a good thing and maybe they will call the FOC The BeastIE!!!!

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I take it you have been to those Six Flags parks THIS year?

If not, your experience isn't all that relevant, given Six Flags is under new management.

For the record, the filthiest park I have been to this year, BY FAR, was Paramount's Kings Dominion. It was worse than ANY Six Flags park I have ever been to.

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My assumption is that Pepsi will be served at the newly acquired parks.

Honestly, Kings Island under Paramount hasn't been terrible, with some neat attractions many like. Very dirty and trashy? Yes, some guests can't grasp the concept of trash cans, not smoking in lines, and hygeine, but the employees do work hard to clean stuff. But I agree with many here that things can only get better with Cedar Fair!

Last note, I think some should either read the more recent trip reports from Six Flags parks, or visit one. I encountered clean pathways and good employees on my visits to SFKK and SFSTL.

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Yeah dirty and trashy like alot of six flags parks, its a shame to see your park looking like fiesta texas, astro world, or six flags new england with all the garabge on the ground.

Really ronnie??? How many of those parks have you been to to experiance all that trash on the ground? Hmmm..... zero thats what i thought and just for your info Six Flags New England is a really clean and very well lanscaped park! So please dont diss Six Flags bc this year is a whole new year! Trust me! So please dont talk poop unless you can back it up!

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Not only that, but Six Flags New England has always been well landscaped. The crowds that park gets, along with Six Flags Great Adventure, pose...how to put this?....unique challenges that midwest parks for the most part do not have to deal with. I can't imagine Six Flags Great Adventure, in particular, being managed by Cedar Fair or even Paramount. The bravest security people at either organization do not have the daily challenges that those two parks' patrons frequently present...

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I take it you have been to those Six Flags parks THIS year?

If not, your experience isn't all that relevant, given Six Flags is under new management.

For the record, the filthiest park I have been to this year, BY FAR, was Paramount's Kings Dominion. It was worse than ANY Six Flags park I have ever been to.

I was just kidding, I know the new englands snapper, and yes I know SF has improved. SFKK looks beautiful.

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Yeah dirty and trashy like alot of six flags parks, its a shame to see your park looking like fiesta texas, astro world, or six flags new england with all the garabge on the ground.

Really ronnie??? How many of those parks have you been to to experiance all that trash on the ground? Hmmm..... zero thats what i thought and just for your info Six Flags New England is a really clean and very well lanscaped park! So please dont diss Six Flags bc this year is a whole new year! Trust me! So please dont talk poop unless you can back it up!

First off Brandon, you need to settle down and stop taking the internet so seriously. You dont know me nor did you know me, you cant even spell my name right, so how you can you tell me what parks I've been to? Exactly. I wascause I know you now work at SFNE and astro world and fiesta texas I have been to MANY times and they were awful every time I went there. You get a little to defensive on the itnernet buddy, hope the season's going well at SFNE I'll be going there this summer when I go to stay with friends. You know I have nothing but love and respect for you Brandon.

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I take it you have been to those Six Flags parks THIS year?

If not, your experience isn't all that relevant, given Six Flags is under new management.

For the record, the filthiest park I have been to this year, BY FAR, was Paramount's Kings Dominion. It was worse than ANY Six Flags park I have ever been to.

Kings Dominion always has been the Red Headed Step Child of the Parks from When it was Taft Controlled, KECO Contorlled and Paramount controlled.

The really difficult part of the whole issues is with the fact that Kings Dominion competes directly with Busch Gardens. When people go to both of the parks it really makes Kings Dominion look even worse.

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What will probably happen is that Coke products will be served at the Paramount Parks through 2013, when the current seven year contract expires. At that point, the parks may switch over to Pepsi (boo!). Cedar Point switched over to Pepsi from Coca-Cola in 1992.

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