News: CEDAR FAIR, L.P. TO ACQUIRE PARAMOUNT PARKS

On the surface, it wouldn't seem to make sense to move Cedar Fair's corporate office since Cedar Point, Geauga Lake, Kings Island, Michigan's Adventure, and Dorney Park are all relatively close by. Why would they move their corporate headquarters to an area where they only have one park when they could stay close to so many of them?

And don't forget the change from Coke to Pepsi, not to mention 25 cent cotton candy! :)

Chief Wahoo said:
Cedar Fair moving out of Ohio might have some IRS implications that I don't know anything about. That said, the history of Cedar Point has a lasting impact on many areas of the corporation and that would be a pretty significant change.

However, the Carolinas offer golf almost year round and Sandusky doesn't. Not that THAT would be a determining factor.

For tax purposes, Cedar Fair, L.P. is actually a Delaware based company.

Ah yes, Delaware. Home to every insurance company too if I'm not mistaken as well as many national banks.

Sorry about the misinformation there.

When they say the 1.2 billion dollar transfer is in cash, do they mean actual cash bills or is it something like stock or a big check? Sorry if this sounds stupid, I am just clueless.

That would be a bank transfer I think.

The 1.24 billion goes to the stockholders of Paramount Parks. They're the real owners of the company, so they're the ones who get the money from the sale. Each of them will get either a check, shares in Cedar Fair, or a combination of the two. Actual logistic-wise, checks will probably be drawn directly off of the finance company that is forwarding the financing to Cedar Fair to pay the expenses of the buyout and pay the shareholders for their shares of stock, but that's an operational detail that can be worked out between Cedar Fair, Paramount Parks, and the finance company.

OK I am posting my opinion of how I feel about all this. And I am going to cross post it wil coasterbuzz, of which I am also a member.

Ok my two favorite parks are now owned by the same company, Cedar Point and Kings Island.

How does that make me feel? Well I like how Cedar Fair runs their parks (or at least the ones that I have been too) but CF does not do theming very well (or at all) and Paramount does very good theming.

If CF can keep the theming at the Paramount parks and even move it to some of their other parks then I am all for it. But I don't want to see Kings Island turn into another Cedar Point. I like my theming, and it's nice having a park that is just for the thrills (Cedar Point) but it is also nice to have a park that immerses you in the themes and makes it seem that you are not in the same world anymore (Kings Island).

I know I know wishful thinking but it is nice all the same.
Oh Well, time will tell, but I am still happy :D

Paramount Parks has no shareholders, it's owned by CBS Corp.

I doubt very much that they'd move headquarters from Sandusky, mostly because of Kinzel's attachment to the place, retirement or not. I think that Falfas, his obvious successor, is also fond of the area. I can't think of any good business case for moving.

Morté615 said:but CF does not do theming very well (or at all)

That is because Cedar Fair has not really had a highly themed "Theme Park". We can't really say if they are good or not at theming until they try it at PKI, which is already themed. Cedar Fair just never really had the chance to "theme" an entire park. You shouldn't base the theming of a whole park off of one or two rides they did.

*** Edited 5/23/2006 12:15:21 AM UTC by 99er***

Like I said above, it will be a bank transfer, I don't see Dick kinzel showing up at the closing with a brief case filled with 1.4 Billion dollars. :}

OK I agree that I shouldn't hold CF accountable to just Cedar Point, but I have also noticed that the only CF park that has anything close to the amount of theming that KI does is Knott's (I have not been there, this is information that I gathered from people who have, please correct me if I am wrong).

So I am HOPING that CF can keep the theming, and keep it looking good. Of course they are gaining the people who are currently maintaining it (baring review I am sure) so if they listen to them, all should be fine. :) *** Edited 5/23/2006 1:06:30 AM UTC by Morté615***

Grady said:
Like I said above, it will be a bank transfer, I don't see Dick kinzel showing up at the closing with a brief case filled with 1.4 Billion dollars. :}

I would love to see a briefcase that huge, just joking. Thanks for explaining JeffV and everyone else. *** Edited 5/23/2006 1:11:01 AM UTC by Chris Mills***

I'd be so afraid some idiot would shoot him with that much money in his hands :/
I think thier theming could improve, because for every late Paramount Parks employee to be fired would be terrible. Obviously with the addidtion of five parks, there will have to be some new leaders for individual parks. Some from Paramount will probably stay and suddenly, Cedar Fair has theming "know how".

I don't know, just a logical guess. Anyone else think this?

Honestly, I see from the director of each park down staying throughout this year at least. I don't think CF is too keen to buck this obviously successful chain.

OH MY GOD!!!!!

This IS AWESOME!!!

Chris Mills said:
When they say the 1.2 billion dollar transfer is in cash, do they mean actual cash bills or is it something like stock or a big check? Sorry if this sounds stupid, I am just clueless.

When you said "big check" all i could think about was that big check you have to fill out on the Price is Right. :)

And i could see Dick Kinzel walking in the office....here ya go guys!

Wow. This is really amazing. I would have never expected an announcement like this so soon. Can't wait to see what will be done with them.

I think this is a good move for Cedar Fair. I just hope they don't go throw the licencing for the Paramount and Nick brands out. Snoopy and Cedar Point and the others at Kings Island can be a good marketing thing.

Edit: I hope Cedar Fair doesn't "underestimate" the theme aspect like they did the animals at Geauga Lake.

*** Edited 5/23/2006 2:43:48 AM UTC by 0g***

Long term, this should be good for the company, but I worry a bit about the short term. The Geauga Lake acquisition had a pretty negative affect on Cedar Point in terms of lost management talent and budget cutting to make up for GL's attendence and profitability shortfalls. I hope they don't just go in and ax everyone. I guess they probably won't because for the most part, these parks are already relatively well run. In some areas like technology infrastructure (caugh season pass processing caugh), the Paramount Parks are probably superior. The parks aren't a wreck like GL was. At the same time, I hope CF learned their lesson with the PR blunders they made at GL.

I'm glad that Cedar Fair now has other potential areas for growth now so they can stop trying to cut and cut and milk every last cent out of the flagship park so they can increase threir distribution by a penny per quarter.

As for the headquarters moving from Sandusky, I could see it going either way. Keeping it in Ohio (where they have three parks concentrated and relatively central geographically speaking) makes sense, but I guess having it in Cleveland or Cincinatti (closer to a real airport) might be good. I'd really like to see it stay though. I have no real love for the city of Sandusky, but the company sprung up from Cedar Point and there is so much history there that it'd be sad to see it be any other way.