Amusement Industry Set For Shake-Up As Six Flags Nears Merger Deal With Cedar Fair: Report

Author: Shivani Kumaresan | November 02, 2023 05:36am

Six Flags Entertainment Corp (NYSE:SIX) and Cedar Fair (NYSE:FUN) are reportedly on the cusp of finalizing a merger, potentially reshaping the landscape of regional amusement parks in the U.S.

An agreement could be finalized as soon as this week, assuming there is no last-minute snag, the WSJ reported, citing people familiar with the matter.

This anticipated amalgamation arrives as Cedar Fair, the proprietor of renowned attractions like Ohio's Cedar Point, is poised to disclose its earnings shortly.

The merger would meld Six Flags' portfolio, which encompasses 27 parks in North America, with Cedar Fair's suite of properties and hospitality ventures.

Cedar's attractions, such as North Carolina's Carowinds, have long been speculated as potential acquisitions by larger national entities, underscored by last year's spurned purchase proposal from SeaWorld Entertainment Inc (NYSE:SEAS).

Despite their focus on local visitors, Six Flags and Cedar Fair hold a market valuation close to $2 billion each.

After a challenging season with extreme heat affecting visitor numbers, the companies have been striving for recovery.

Also Read: Disney Slashes Children's Ticket Prices Amid Attendance Slump

The report further noted Six Flags, under the direction of CEO Selim Bassoul, has enacted a rejuvenation strategy involving pricing adjustments and park investments.

Meanwhile, Cedar Fair, steered by CEO Richard Zimmerman, could enhance Six Flags' presence, especially in the Midwest.

The merger talks are happening against the backdrop of activism from investor Jonathan Litt, who has urged Six Flags to monetize its real estate assets. 

Price Action: SIX shares closed higher by 5.53% at $21 on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Posted In: FUN SEAS SIX