Posted Monday, April 25, 2005 11:51 AM | Contributed by supermandl
Daniel Snyder, owner of the National Football League's Washington Redskins, said Friday, April 22, he might be interested in buying some or all of amusement park operator Six Flags Inc. Snyder, who owns about 8.75% of Six Flags through his Ashburn, Va., hedge fund Red Zone LLC, said he might also attempt to influence the Oklahoma City-based company's board and management through a proxy fight to consider any of several options, including a merger, a sale of assets, a business combination, and recapitalization or refinancing, according to a Securities and Exchange Commission filing.
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So if Snyder buys Six Flags, does anyone think they'll actually sell SFGAdv, especially after all of the improvements and additions they've just made this year? Go ahead...sell off one of your best (if not the best) park in your chain, and see what it does for business...
Anyway, I also think a merger would be a great idea because CF wouldn't have to spend so much money and find themselves with too much to handle. A merger would be far more effective from a financial perspective.
A merger is good to for this chain. Ex. Cedar Fair. Snyder do your Stuff!!!!*** This post was edited by SF Critic 4/25/2005 12:45:48 PM ***
These words should scare the living daylights out of those who live near the small and struggling members of the Six Flags family. Believe me, it is a lot easier to find a buyer from the "real-estate developer" ranks than it is to find buyers interested in running amusement parks. Me-thinks Snyder et al may not be too interested in perserving the charm and history of some of these parks. Lets just say that a little reading between the lines makes me pray that CedarFair is in the market for some huge expansions. Without them to the rescue, it seems a safe bet that the census for American amusement parks is ready to start a decline...
He clearly realizes that he could buy the chain and turn around and sell the smaller money losing parks for a profit to developers. Other parks such as Great Adventure also have tons of land he could sell off and still keep the park. A win-win situation for Snyder.
As far as I'm concerned, this is bad news. He is a smart business man and I'm very sure that he does not have the best interest of these parks in mind.
So I 100% agree with Jeffrey R Smith in that this should scare the crap out of those living near the smaller parks.
I believe Snyder has the marketing sense to get money out of people in amusement parks. As for the business side, he didn't know anything about football when he purchased the Redskins and was the youngest owner of a NFL team at the time of the purchase. However, he went out and hired people that new how to run a football team and just when he was about to be run out of town, he hires Joe Gibbs, a fan favorite.
I have no doubt if he was to purchase SF, he would hire advisors from within the industry that would tell him how to run the company.
If you apply the parallels to Six flags, you can easily see why amusement park enthusiasts should be worried. I've no doubt, Snyder can make Six Flags more profitable. However, at what expense will this profit come? Read between the lines and it is obvious Snyder plans a sell off.
And if Snyder does not gain control, it is just a matter of time before somebody else does the same. Six Flags has taken on so much debt, that I see no way that all the parks in the chain can ever survive...just my opinion...
Snyder complained about the amount of capital expenditures. Come on... that's par for the course in amusement parks, and to Six Flags credit they've managed to do that right. It's the service, stupid!
Six Flags already has the product. The product and the marketing message are fine. It's the condition of the product that is an issue.
I just fear that rather than put the hard work into changing the service problem, the easy fix is to sell off the under-performers. This is as old as time in the business world. I'm sure Snyder sees a quick and easy buck in the real estate market. If not Snyder, then somebody else will try the same. Anyhow, it does not take a genius to see them sneaking "or even to real-estate developers" in the middle of the article to see what the plan is.
The sad fact is that Six Flags has been run into the ground to the point in which they are now quite vulnerable to the likes of Snyder and his tactics. Their little service problem has left the small fish in a very dangerous position. Stockholders would be glad to get value from anywhere, including real estate. Let us hope the likes of Cedar Fair or some rich individuals/businesses with an amusement park itch can step up and save the day.
As for some SF parks being lost if Snyder buys out? Trick Question!
Synder might also attempt to influence the Oklahoma City-based company's board and management through a proxy fight to consider any of several options, including a merger, a sale of assets, a business combination, and recapitalization or refinancing, according to a Securities and Exchange Commission filing.
Land that Six Flags will never use can be sold to real-estate developers. SFGAdv has about 2,000 + acres that will probably will be never used in the future. Sell most of that land. Now I dont know how much land they are currently using between the theme park, water park, and animal safari, but I know they still have alot of land.
SFI needs to merged with someone but who? I think the best decision is Verizon. Its only if Verizon is interested in the parks. If you don't know Verizon is the largest phone company in the world (broadband, wireless, regular phone). This company can stand on its own. They don't need to merge like Cingular/AT&T. Verizon is the Father. They just bought out MCI. They do have a deal with Directv in some way because when you get internet it comes with the TV service. I know there are other services that are good out there. So what do you think?
Snyder can make this a tough fight, and it can either become a freindly merger type of deal, or a hostile takeover. Whatever happens, the stock price can only go up.
Something gotta give, and it's gonna happen soon.
P.S. If CF would like to buy SFGAm though that would be 100% ok with me.
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