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Credit: Six Flags Great AdventureSix Flags and its top rival just completed a massive $8 billion merger, creating the largest amusement park operation in the country. But fans of certain attractions are keeping a watchful eye on developments now that the merger has taken place, and some are getting very worried.
Two Amusement Park Giants Merge Into One Massive Behemoth
Six Flags and Cedar Fair, two of the largest amusement park operators in North America, announced an $8 billion merger that has significant implications for the entertainment industry.
The merger, combining the resources and attractions of both companies, aims to create a dominant force in the amusement park sector. The combined entity is expected to enhance operational efficiencies, expand market reach, and offer a more diverse range of attractions to a broader audience.
With Six Flags known for its thrilling roller coasters and Cedar Fair recognized for its family-friendly parks and attractions, the merger aims to capitalize on the strengths of both brands to provide an unparalleled guest experience.
The merger comes at a time when the amusement park industry continues to rebound from the impacts of the COVID-19 pandemic, which saw significant declines in attendance and revenue.
By joining forces, Six Flags and Cedar Fair hope to leverage their combined resources to invest in new technologies, enhance park experiences, and drive attendance growth.
Additionally, the merger is expected to yield cost savings through synergies in operations, marketing, and management. Investors and industry analysts are watching closely to see how this merger will reshape the competitive landscape of the amusement park industry and influence the future strategies of other major players in the market.
The success of the deal will determine the future of these amusement parks, and diehard rollercoaster fans are watching carefully. Some are optimistic that the condition of Six Flags’ parks will improve. Others worry it will become more expensive to get into their favorite parks.
The Merger is Finally Complete
Earlier this week, Six Flags and rival Cedar Fair Entertainment put the finishing touches on an $8 billion merger, creating the largest amusement park operator in the country.
The merger means that Six Flags and Cedar Fair now operate 42 amusement parks and water parks in 17 states together.
But it’s not only the Federal Trade Commission and the Department of Justice who’ve been watching the merger closely.
Coaster Fans Are Concerned
Like Disney Parks fans, many fans of amusement parks are passionate about the design of their favorite parks. They are well-versed in the history of the parks, and they notice the slightest changes.
Presently, each park that is affected by the Six Flags-Cedar Fair merger will retain its previous branding and its name. But some fans fear that the parks will ultimately lose their nostalgic feel, eventually becoming victims of a “corporate sameness.”
“There’s apprehension,” said Bill Kneass, a Six Flags fanatic who has been a season pass holder for nearly 30 years.
He has long enjoyed twisting through the Nitro coaster and the Wonder Woman attraction at Six Flags Great Adventure in New Jersey.
Related: Disney Patents a Coaster That Jumps the Tracks
Kneass visits Six Flags with his friends and his sons. Sometimes, he visits alone so he can enjoy the park and enjoy the peace and quiet of the park gardens. Kneass says he honors each trip by stopping by to see the engraved brick he bought to commemorate the 50th anniversary of Six Flags.
However, he has concerns about the new merger with Cedar Fair Entertainment.
“If the new Six Flags can find a way to honor the history of their parks and bring in new attractions for all types of enthusiasts, they’re poised for success,” he said.
Chris Miller, owner of the YouTube channel Coaster Conquest, says he’s “cautiously optimistic” about the merger.
“I am hopeful that joining forces will help bring a variety of different new rides to parks that don’t normally see updates,” he said. But Miller admits he is “worried that the cost of an all-park season pass will be super expensive” because there will be less competition now.
He says he’s also worried that the “beautiful” Cedar Fair parks will get lost in the merger and become more like Six Flags and lose their unique identities.
“I hope they keep the parks as they are,” he said.
The New Company Doesn’t Foresee Big Changes
Six Flags Entertainment Corporation, the newly-formed operator, says it doesn’t plan on any major upheavals at the park level, according to spokesperson Gary Rhodes. Rhodes further said that fans don’t need to be worried about “immediate changes” involving pricing, ticket options, season passes, and the like.
“We expect this combination will enable us to deliver even more engaging and entertaining experiences to guests,” he said.
Six Flags Has Its Struggles
The two amusement park operators have joined to compete with destination theme park resorts like Disney World and Universal Studios. They also hope to use their new size to bring costs down with vendors and suppliers.
In the new merger, Cedar Fair Entertainment controls 51% of the new company, and Six Flags controls the remaining 49%. The company, which uses “FUN” as its stock ticker, will go forward with Cedar Fair CEO Richard Zimmerman at the helm.
But Six Flags has seen its share of struggles in recent years. Management changes and changes in the company’s strategies have led in part to Six Flags stock taking a 40% tumble.
In 2022, Six Flags increased ticket prices, raising the average admission ticket price from $28.73 per person to nearly $36.00 per person. That decision cost the amusement park operator a more than 25% drop in annual admissions.
It was part of Six Flags’ “premiumization” plan to bring in fewer people to parks but get them to spend more. CEO Selim Bassoul complained in 2022 that Six Flags had turned into “cheap daycare centers” for teenagers and said the company wanted to “migrate…a little bit from what I call the Kmart, Walmart to maybe the Target customer.”
Kneass, the season pass holder pro, says the shifting strategies ultimately changed the experience at the park.
Kneass says he noticed a change in Six Flags’ focus as the park began to focus solely on adding thrill rides. When it came to smaller rides for kids, evening entertainment, and shows, things were lacking. He also says he noticed staffing changes and a change in customer service.
“Six Flags can feel a bit disjointed,” he said. “Finances were more important than the guest experience.”
Cedar Fair’s attendance numbers trumped those of Six Flags in 2023. Financial analysts ultimately chose Cedar Fair as the stronger manager of daily operations between the two.
T“A lot of people used to Six Flags parks are happy that they’re merging and look forward to Cedar Fair behind the wheel,” he said. “People tend to think Cedar has better service.”
Potential Changes That Could Be Seen
MSN says that the amusement park industry “faces significant volatility, including the rising threat of extreme weather driven by climate change” and that “Six Flags has said it’s adding more shaded structures, water misters, splash zones and air-conditioned areas to contend with extreme heat.”
Merging the companies makes sense as it renders the parks less dependent on one specific property or region.
“They’re so strategically laid out across the United States,” says Dennis Speigel, the chief executive of consulting firm International Theme Park Services. “There’s not a lot of overlap. If you take those parks and meld them together, you have tremendous marketing opportunities.”
Other changes that could eventually come to the parks as a result of the merger include new season pass offerings, as well as loyalty programs for those who visit often.
The new company could also decide to combine its intellectual property licensing, which means DC Comics and Looney Tunes characters could one day end up at Cedar Fair parks, and Snoopy might end up at Six Flags.
Still, some fans are concerned about a more mundane, cookie-cutter-type offering at all of the parks that are represented in the new merger.
“Six Flags is going to corporatize it and budget out everything and end up with this very sanitized, fixed version of the amusement park,” said one concerned patron. “That might be great for the bottom line, but it would be boring.”