Credit: Inside The MagicSix Flags is one step closer to getting absorbed by Cedar Fair as nearly 70 million shareholders vote to approve the historic theme park merger, which would prove to be historic.
Millions Vote for Theme Park Merger as Six Flags to Be Absorbed by Cedar Fair
On Tuesday, shareholders of Texas-based Six Flags voted in favor of a merger with Ohio’s Cedar Fair, the parent company of Carowinds. The decision saw overwhelming support, with 67.3 million shares endorsing the move, compared to just 195,000 shares opposing it. Cedar Fair includes Cedar Point, Kings Island, Soak City, Dorney Park, Kings Dominion, Wildwater Kingdom, and several other Cedar Fair Parks. Cedar Fair Entertainment Company in the United States, including Cedar Fair shareholders, seems to be on board with this merger, which could see different IPs going to different theme parks, like DC Comics.
Notably, Cedar Fair’s shareholders are not required to vote on the merger. Pending approval, the stocks of the newly combined entity will be distributed nearly evenly.
The U.S. Department of Justice scrutinizes the merger, assessing its potential impact on the amusement park industry and visitor expenses. The regulatory review aims to ensure fair competition and consumer protection within the sector.
The combined entity resulting from the merger will boast ownership of 27 amusement parks, 15 water parks, and nine resorts across North America. Notably, the company will relocate its headquarters to Charlotte.
The merger plans were initially disclosed last autumn, with both companies expressing willingness to cooperate with any requests from the Department of Justice. In November 2023, Cedar Fair and Six Flags announced their merger, creating a dominant player in the amusement park landscape with a portfolio of 42 parks, 15 water parks, and nine resorts across 17 states, Canada, and Mexico. Six Flags shareholders of Six Flags Entertainment Corp and Cedar Fair unitholders seem to be all on the same page with this pending merger, which would allow for various new park offerings, possibly a new attraction or two at the theme parks or water parks, bringing a roller coaster experience as well.
The merger, valued at over $3.5 billion, is anticipated to conclude in the first half of 2024, contingent upon regulatory clearances and shareholder consent. Under the agreement, Cedar Fair’s shareholders will possess a 51% stake in the combined entity, while Six Flags’ shareholders will hold the remaining 49%. This consolidation will combine Cedar Fair’s Peanuts character licensing with Six Flags’ attractions featuring Warner Bros and D.C. Comics characters, presenting a comprehensive entertainment offering to visitors.
The merger between Six Flags and Cedar Fair is poised to profoundly impact the theme park industry, marking a significant historical moment. By combining forces, the resulting entity will emerge as one of the foremost theme park operators globally, boasting an extensive array of amusement parks, water parks, and resorts spanning North America. This expanded scale positions the merged company to wield substantial influence within the industry, enabling it to connect with a broader audience and shape the competitive landscape.
With collective ownership of numerous acclaimed amusement parks and water parks, the merged entity stands to command a significant market share, potentially catalyzing heightened consolidation within the sector. This heightened market presence holds the potential to establish new benchmarks for competition and foster innovation among theme park operators.
The merger between Six Flags and Cedar Fair promises to redefine the theme park landscape, ushering in a new era characterized by evolved market dynamics, enhanced visitor experiences, and refined industry regulations.