Jana Partners wants Six Flags to sell

Wow is Managing Partner Scott Ostfeld straight out of central casting.

Sell to whom? Who is looking to buy with the private credit markets tight and economic indicators looking horrible.

Possible that they didn't like who was chosen to replace Zimmerman and Basoul and now are trying this play to get who they wanted?

I don't think it's any more complicated than they're looking for short term financial gain.

We are down to one last CF board member… and the new Board Chair went along with Bossoul on much of the wreckage , so I understand the push there. Alot of the new board is better then it was a a year and did get Reilly.

Selling: They just sold parks, closed SFA and in middle of bids for it, and are winding down CGA. After jettisoning most of the leased parks, and the non core midwest. I don’t think there is really any meat on the bone left, that would not be hugely detrimental, it also looks like going to be crazy hot summer, on top of the 250th, and hopefully the new app and system integration means things are smoother,so things are looking good for a rebound.

Richard Haddrill now Six Flags board chairman. Board expanding to 11 members. When Jennifer Mason's term ends, the board will revert back to 10.

https://investors.sixflags....fault.aspx

I suspect any serious buyer would be looking to liquidate the company ASAP, selling off the most valuable real estate, and also the rides at firesale prices to any interested domestic or overseas parks.

The problem is, I don’t think you can liquidate the company and get enough to cover the secured debt. If that’s true, there’s nothing left for equity (JANA)

I suspect, as others have said, that what JANA wants is the company to enter into some form of sale leaseback, and siphon off whatever excess there is as a dividend. Although to be honest I don’t see how you even make that work.

Either way it’s bad for our hobby. REAL bad

There are parks like Kings Island that I'd say are worth far more as a functioning park than the underlying land. It's one of their most successful parks and land in Ohio is cheap. But who do you sell it to if you liquidate Six Flags?

The sale request was probably a if you don't do X, Y, or Z you need to sell statement.

Looks like they got part of their board restructure.

CreditWh0re:

I suspect, as others have said, that what JANA wants is the company to enter into some form of sale leaseback, and siphon off whatever excess there is as a dividend. Although to be honest I don’t see how you even make that work.

Yeah this was always what they wanted.

There was never going to be some natural, quick 20%+ stock jump just from “strategic changes” over a short period of time. It’s laughable to think this stock was going to do anything in a 5 month off‑season. And the PR JANA is pumping out sounds like they are shocked a full turnaround over a short off season didn’t happen

This was always about the sale‑leaseback. Quick cash. Quick stock pop. Then dump it.

The board knows this is a bad deal long term. We already saw parks sold off and they generated lower than expected returns. Those were for full functioning parks not even sale‑leasebacks, which would get even less! You get a little upfront cash and then you lock the parks into absolutely awful long‑term leases.

That’s why I suspect the current the board and leadership is a hard no on this. And that’s also why JANA wants board members who agree with the cash grab. They got in around $25, and now the stock is just hovering around $17. Nobody is buying the whole company anywhere near $25 now. So their best remaining play is forcing a sale‑leaseback to bump the stock enough so they can bail.

Sale‑leasebacks are temporary sugar highs for these groups to make money on paper. Almost never a good long‑term strategy, especially for an operator that actually needs flexibility to run parks. JANA is a scourge, and honestly I hope they get fleeced either way.