-
ℹ️ Heads up...
This is a popular topic that is fast moving Guest - before posting, please ensure that you check out the first post in the topic for a quick reminder of guidelines, and importantly a summary of the known facts and information so far. Thanks.
SeaWorld makes offer to aquire Cedar Fair
- Thread starter MakoMania
- Start date
Yeah that's never going to happen, Perhaps a way to increase the price of SeaWorld stock?
For starters I don't think SeaWorld even comes to close to having that sort of cash and taking debt that big is just too big of a risk. It's more likely that it would be the other way around with Cedar Fair offering to buy SeaWorld.
I've actually thought for a long time a Merlin takeover of SeaWorld in the long run is quite likely however a SeaWorld takeover of Cedar Fair seems very unlikely.
That article really didn't say much at all and was really rather short. Seems like something is going on but I doubt Cedar Fair will accept the other as they've reportedly had other offers that they've declined, I doubt they want to sell out.
MakoMania
TS Member
I obviously don’t know if Cedar Fair’s board will accept the offer. But there’s no financial reason why this couldn’t happen. The timing is perfect, SEAS has had an excellent couple of years comparatively whereas Cedar Fair has struggled.
The company is in massive expansion mode, with large capex allocation for every park on an annual basis and multiple resorts & hotels for existing parks in development and to be announced soon. This would obviously take the expansion mode to another level though.
The company is in massive expansion mode, with large capex allocation for every park on an annual basis and multiple resorts & hotels for existing parks in development and to be announced soon. This would obviously take the expansion mode to another level though.
AT86
TS Member
Merlin have previously stated they have no interest in purchasing Seaworld parks due to their policy on not keeping whales and dolphins captive. There was talk a few years back about purchasing Busch Gardens parks but SEAS didn’t want to separate the group.
This was a while ago and also during Merlins PLC stage. Now Merlin is owned by private companies it may well be a different story. Blackstone have a business model of buy company rapid invest and expand and sell company 5-10 years down the line.
Rick
TS Member
- Favourite Ride
- Crux
Ironic in a somewhat Alanis Morissette fashion!
Matt N
TS Member
- Favourite Ride
- Mako (SeaWorld Orlando)
Out of interest, why is it that people think SeaWorld is in such a poor financial situation?
I know Blackfish happened, but I was under the impression that the last few years pre-COVID had been really quite strong for the company, and also that they’d done quite well out of COVID; as I posted in the BGT thread not long ago, SEAS recently reported record profits, and their overall results in 2021 were strong. The liens in 2020 were only a temporary measure to stem outward cash flow during the initial lockdown.
Correct me if I’m wrong there @MakoMania or anyone else, but that’s just my personal inference based on what I see.
I know Blackfish happened, but I was under the impression that the last few years pre-COVID had been really quite strong for the company, and also that they’d done quite well out of COVID; as I posted in the BGT thread not long ago, SEAS recently reported record profits, and their overall results in 2021 were strong. The liens in 2020 were only a temporary measure to stem outward cash flow during the initial lockdown.
Correct me if I’m wrong there @MakoMania or anyone else, but that’s just my personal inference based on what I see.
Rob
TS Team
- Favourite Ride
- Steel Vengeance
I'm unsure what to make of this also. SEAS current investment in their parsks is quite astonishing, would such a purchase have an impact on this? And could they sustain investment across their current parks and all Cedar Fair parks; would they need to?
This would however be a lot better than Six Flags aquiring Cedar Fair.
Whatever happens, I hope the Cedar Fair name lives on.
Also - I have moved these posts in to their own thread as this could be significant news on its own.
This would however be a lot better than Six Flags aquiring Cedar Fair.
Whatever happens, I hope the Cedar Fair name lives on.
Also - I have moved these posts in to their own thread as this could be significant news on its own.
Matt N
TS Member
- Favourite Ride
- Mako (SeaWorld Orlando)
This would be quite an obscene scenario if it came to fruition! It would give SEAS a substantial stronghold over the US theme park industry, and it would have them in control of some truly iconic coaster parks.
In terms of the investment, I don’t see why it couldn’t continue; as much as they’d be blowing a lot of cash on the buyout and operating costs of the Cedar Fair parks, they would also have the additional operating profits of those parks flowing in to offset that.
In terms of the investment, I don’t see why it couldn’t continue; as much as they’d be blowing a lot of cash on the buyout and operating costs of the Cedar Fair parks, they would also have the additional operating profits of those parks flowing in to offset that.
MakoMania
TS Member
This is very true. The exception is when you make an in park purchase all the SEAS parks have the same paper bags that say SeaWorld parks on them.
That’s another small thing that would almost certainly happen in a takeover scenario, SEAS environmental policies like banning single use plastics and installing solar would come to the new parks.
Skyscraper
TS Member
- Favourite Ride
- Nemesis
Coaster Studios have just uploaded a good video on this;