Topline
Six Flags and Cedar Fair, two of the nation’s largest theme parks, are nearing an agreement to merge, the Wall Street Journal and Reuters reported, citing anonymous sources.
Riders raise their arms as they travel the “Kingda Ka” roller coaster 19 May, 2005, at Six Flags … [+]
Key Facts
The deal could be finalized as early as Thursday when Cedar Fair releases its quarterly earnings report, Reuters reported, but a last minute snag could derail the deal.
It isn’t clear whether Cedar Fair’s parks, which all have different names, would retain their names and branding or be rebranded as Six Flags parks, which—aside from the water parks—all use Six Flags branding.
Forbes has reached out to both Six Flags and Cedar Park for comment.
Tangent
Six Flags stock price rose around 6% to $21 by 4:20 p.m. after the news Wednesday afternoon while Cedar Fair also jumped 6% to about $37. However, both stocks are still far below their peaks. In 2022, Six Flags share price fell 45% and it currently sits well below its peak of around $72 in June 2018. Cedar Fair and Six Flags have a market capitalization of $1.8 billion and $1.7 billion, respectively.
Surprising Fact
This isn’t the first time the two companies have tried to merge. The two companies discussed a merger in 2019, but that ultimately did not come to fruition, according to Reuters. Additionally, SeaWorld attempted to purchase Cedar Fair last year, but its offer was declined, according to the Journal.
Key Background
Both theme park chains have yet to fully recover from the Covid-19 pandemic, struggled with attendance this past summer due to abnormally high temperatures across North America and are staring down a potential economic downturn, according to the Journal and Reuters. Six Flags and its CEO Selim Bassoul have been attempting to turn the company’s fortunes around through a new strategic plan that involves raising prices, investing in park upgrades and accepting fewer visitors. Cedar Fair’s CEO, Richard Zimmerman, rose through the ranks of the company after he started as a general manager at Kings Dominion park in Virginia in 1998. Six Flags operates and owns 27 parks across the U.S., Canada and Mexico, while Cedar Fair runs 15 parks in the U.S. and Canada, according to their respective websites.
Further Reading
Six Flags, Cedar Fair Near Merger Deal (Wall Street Journal)
US amusement park operators Cedar Fair, Six Flags in merger talks-sources (Forbes)
How U.S. Theme Parks Are Celebrating Halloween This Year (Forbes)
Source: https://www.forbes.com/sites/willskipworth/2023/11/01/theme-park-chains-six-flags-and-cedar-fair-nearing-merger-reports-say/