Breaking News SFMM

http://investors.sixflags.com/phoenix.zhtml?c=61629&p=irol-newsArticle&ID=875468&highlight

If what Cedar Fair will buy SFMM. I know that lots of money. What your thought?

Not going to happen. Knotts is fairly close. Cedar Fair has enough trouble with the former Six Flags park that they have now.

I think you mean "what if CF bought SFMM," and not "If what CF will buy SFMM." Dyslexic anyone?

Anyways, I agree with Jeff. Knott's is too close, and keep in mind CF just spent over a billion dollars to acquire 5 new parks, I think they'll stay put for a while with the parks they've got.

With Cedar Fair just getting the Paramount Parks, it won't happen. I think there is a better chance of them dismantling the park and selling it as real estate as several articles I have read have suggested might happen.

Knotts is about 2 hours away from SFMM so it would be just like CP to GL. but I don't see CF buy SFMM because of the Paramount buy out. It would be kinda wierd to se CF own the two biggest parks in the US. But I don't think it will happen.

I agree with DBCP. The figure I read stated that real estate in that area of Valencia is going at around $750,000 to $1,000,000 per acre, which, considering the size of the park, could go a long way towards helping pay off the multi-billion dollar debt Six Flags has accrued over the years.

If they're willing to close a park in Houston for similar reasons, I don't see why they wouldn't cut their losses and try to do the same in the Los Angeles area at a park that, from what I gather, has lots of problems in general (i.e. security and capacity.)

what do you guys think Six Flag future will look like? Like in 2 or 3 years will we see anymore Six Flags park, or will they all of been bought? What do you guys think?

We will NEVER see a new Six Flags park for at least 10 years. They need to downsize. A new park won't happen.

I think we'll see far fewer coasters at Six Flags parks, along with removal/sale of some of what they have now. It's a pretty extreme new direction their parks are going in.

Remember one of the things that got Six Flags in so much trouble is buying too many parks and taking on more debt than the boat could hold.

According to Mapquest, KBF and SFMM are only one hour apart. I understand that traffic makes a difference out there, but it's definitely not the same as GL to CP.

I knew it was only a matter of time. They have few options after their mismanagement from six years ago.

Also remember that Cedar Fair is a conservative company. The Paramount purchase is even out of their normal operating character, IMO.

MrScott
*** Edited 6/24/2006 11:37:27 PM UTC by MrScott***

Jeff Young said:
According to Mapquest, KBF and SFMM are only one hour apart. I understand that traffic makes a difference out there, but it's definitely not the same as GL to CP.

It's like another 15 miles, thats not that big of a distance.

And Cedar Point won't touch this property, investors are already kind of nervous about the new debt according to a Motley Fool article I saw somewhere. One company can only take on so many fixer-uppers, and Cedar Fair is getting dangerously close to crossing this line. I don't know if I like the Paramount buy in the first place, but throw in some SF properties and you have a recipe for disaster.

SF's problems wasn't that they bought to many parks, it was the fact that they couldn't manage them.

Was I the only one who heard Mr. Kinzel say they were going to be taking a break from buying new parks after the Paramount thing?

It might not have been all of their problem, but buying up parks faster than they could recoop from them definitely didn't help the company.

Fastball spoke my thoughts already. Saw the same article from Motley Fool. A park the size of SFMM could be the one thing that could send CF plunging into the area SF is still trying to escape.

To me, I believe CF can handle the Paramount deal expertly. They are good business people, and wouldn't have chanced it if they didn't believe they could do it, and profit from it. But I also believe you won't see any more parks deals for them for many, many years to come. They have no reason to anyway.

If this deal goes through without a hitch they gain so much for their business:

1. They totally own one of the midwests hottest amusement destinations...Ohio!

2. They've expanded international with Canada's Wonderland.

3. They've strengthened their grip in California...and gained themselves big leverage on the east coast.