Six Flags and Cedar Fair Announce Merger to Create Theme Park Powerhouse
December 22, 2023
☀️Trending News
Six Flags Entertainment ($NYSE:SIX) Corporation, an American regional theme park company headquartered in Grand Prairie, Texas, has recently announced a merger with Cedar Fair Entertainment Company, a publicly traded partnership that is one of the largest regional amusement-park operators in the world. The purchase of Cedar Fair by Six Flags for an estimated $4 billion resulted in the creation of a theme park powerhouse. Six Flags Entertainment Corporation is the world’s largest regional theme park company and has twenty-six parks across the United States, Mexico and Canada. It operates many popular theme parks such as Six Flags Magic Mountain in California, Six Flags Great Adventure in New Jersey, and Six Flags Over Texas. The company also has various entertainment, dining, and retail outlets as well as water parks and other attractions. Their popular recreational parks include Cedar Point in Ohio, Carowinds in North Carolina, Kings Island in Ohio, and Canada’s Wonderland near Toronto.
Additionally, Cedar Fair owns a variety of entertainment centers, accommodations, and restaurants. The merger of these two theme park giants will result in a massive chain of parks and attractions that is forecasted to be profitable for years to come. The merger further emphasizes Six Flags Entertainment Corporation’s mission to provide world-class experiences to its guests across the globe, while also allowing Cedar Fair to expand its reach and diversify its operations in the industry. By joining forces, Six Flags Entertainment Corporation and Cedar Fair have created a global entertainment empire that will entertain people for years to come. Together they will be able to compete with larger amusement park chains such as Disney and Universal Studios, potentially offering guests an experience unlike any other. With the purchase of Cedar Fair by Six Flags for an estimated $4 billion, this new powerhouse of the theme park industry looks to be a winning combination.
Share Price
On Wednesday, SIX FLAGS ENTERTAINMENT Corporation and Cedar Fair LP announced that they have entered into a definitive agreement to merge, creating the world’s largest regional theme park company. The new SIX FLAGS ENTERTAINMENT Corporation will be a publicly-traded real estate investment trust (REIT) and will be headquartered at Six Flags’ current corporate headquarters in Grand Prairie, Texas. The combined company will have a portfolio of some of the world’s most popular theme parks, including SIX FLAGS Great Adventure, Cedar Point, Kings Island, and Carowinds. As a result of the merger, SIX FLAGS ENTERTAINMENT stock opened at $24.6 and closed at $24.0, down by 2.8% from previous closing price of 24.8. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SIX. More…
| Total Revenues | Net Income | Net Margin |
| 1.41k | 79.04 | 7.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SIX. More…
| Operations | Investing | Financing |
| 322.81 | -147.41 | -186.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SIX. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.72k | 3.05k | -10.53 |
Key Ratios Snapshot
Some of the financial key ratios for SIX are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 40.6% | -4.6% | 22.3% |
| FCF Margin | ROE | ROA |
| 12.3% | -21.0% | 7.3% |
Analysis
GoodWhale conducted an analysis of the fundamentals of SIX FLAGS ENTERTAINMENT to better understand the company and its operations. After evaluating SIX FLAGS ENTERTAINMENT’s performance and key metrics using our proprietary Star Chart, we concluded that the company falls into the ‘rhino’ category, which indicates that it has achieved moderate revenue or earnings growth. This makes SIX FLAGS ENTERTAINMENT an attractive target for long-term value investors looking for a stable investment opportunity. Furthermore, our analysis showed that SIX FLAGS ENTERTAINMENT is strong in profitability, but weak in terms of asset, dividend, and growth. Finally, we gave SIX FLAGS ENTERTAINMENT an intermediate health score of 5/10, considering its cashflows and debt. This suggests that the company might be able to sustain future operations in times of crisis. More…
Peers
Six Flags Entertainment Corporation is an American amusement park corporation based in Grand Prairie, Texas. It has properties in the United States, Mexico, and Canada. Cedar Fair LP, SeaWorld Entertainment Inc, and Ten Entertainment Group PLC are all competitors of Six Flags.
– Cedar Fair LP ($NYSE:FUN)
Cedar Fair LP is a publicly traded partnership headquartered in Sandusky, Ohio. The company owns and operates eleven amusement parks, two outdoor water parks, one indoor water park, and six hotels. Cedar Fair also operates the Gilroy Gardens Family Theme Park in Gilroy, California under a management contract.
Cedar Fair has a market cap of 2.23B as of 2022. The company’s return on equity is -51.78%. Cedar Fair LP is engaged in the business of operating amusement parks and resorts. The company owns and operates eleven amusement parks, two outdoor water parks, one indoor water park, and six hotels.
– SeaWorld Entertainment Inc ($NYSE:SEAS)
Seaworld Entertainment Inc is a theme park and entertainment company that operates marine-life parks, including SeaWorld, Busch Gardens, and Sesame Place. The company has a market cap of 3.45B as of 2022 and a Return on Equity of -74.7%.
– Ten Entertainment Group PLC ($LSE:TEG)
Ten Entertainment Group PLC is a United Kingdom-based company, which is engaged in the operation of bowling and entertainment centres. The Company’s segments include Bowling and Entertainment and Eating and Drinking. It operates approximately 30 bowling and entertainment centres and over 120 bars and restaurants in the United Kingdom. Its bowling and entertainment centres offer a range of activities, such as ten-pin bowling, laser quest, soft play areas, amusement arcades and pool tables. Its bars and restaurants offer a range of cuisines, such as Italian, Indian, American, British and Mexican. It also provides private party and corporate event facilities at its centres.
Summary
Six Flags Entertainment Corporation is an amusement park operator that has recently made headlines due to its merger with Cedar Fair. The two companies have joined forces in order to create one of the largest operators of amusement parks and waterparks in the world. Investors may find the merger to be a beneficial move as it increases the company’s scale and improves its competitive position. Analysts predict that the combination of the two companies will bring in cost savings through economies of scale, and improved leverage over suppliers.
Furthermore, the broader geographic reach of the combined company could allow for increased revenue opportunities. Investing in Six Flags Entertainment could be a rewarding opportunity for investors, as the company is likely to benefit from the merger and become an even stronger presence in the amusement park industry.
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