Major Six Flags investor favors Red Zone, says wrong time to sell

Posted Wednesday, November 2, 2005 7:25 PM | Contributed by coasterguts

Diaco Investments LP, which holds a 9.8 percent stake Six Flags Inc., said in a regulatory filing on Wednesday that this is the wrong time to put the company up for sale. Diaco said it intends to grant its consent in favor of Red Zone LLC, an investment firm owned by Washington Redskins football team owner Daniel Snyder.

Read more from Reuters via Yahoo.

Wednesday, November 2, 2005 7:35 PM
Here is Six Flags latest letter to stockholders:

http://biz.yahoo.com/bw/051102/25900.html?***


*** This post was edited by coasterguts 11/2/2005 9:45:51 PM ***

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Wednesday, November 2, 2005 8:28 PM
I still don't think Snyder has the answers. Honestly, I'd rather see the company sold.
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Wednesday, November 2, 2005 8:42 PM
I think Snyder is either going to get what he needs or he will abandon that strategy or enter the auction for the company and bid that way. Is Snyder the answer? I don't know. All I know is Burke isn't the anwer.
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Wednesday, November 2, 2005 10:02 PM
I agree with Jeff SELL the company......interesting info about outsourcing the concession sales 270 millon in gross sales with 60 millon in profit sounds like a lot of hotdogs to me?*** This post was edited by THE IGMAN 11/2/2005 10:04:09 PM ***
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Wednesday, November 2, 2005 10:48 PM
I do not like anything about Snyder. I think his ideas are absolutely horrible and may even accelerate Six Flags' demise if he were to take over.
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Thursday, November 3, 2005 12:19 AM
Awesome. Snyder just needs a little more support... :)
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Thursday, November 3, 2005 8:41 AM
I have to jump on the anti-Snyder bus also. Some of his ideas just seem like they will drive more people away. Charging more for "premium" parking may work for the NFL, but not the amusement park industry. No, Burke isn't good for SF, but I don't think Snyder is either. I'm with Jeff and others on this, sell the chain.
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Thursday, November 3, 2005 9:09 AM

Rescue131 said:

Charging more for "premium" parking may work for the NFL, but not the amusement park industry.


I'm not sure if it works or not, but many amusement parks have premium parking policies. Six Flags Great Adventure, Universal Studios Florida and IOA are parks I visited this year that offered premium parking. There are always people willing to spend more for premium service, so they should implement this in any park that can garner enough profit to pay for the additional routing and staffing requirements.

Hersheypark (yes, I know, not a Six Flags park) is probably the best candidate for premium parking, since the parking lot design means that there are limited parking spots in close proximity to the park gate. I can't think of a smaller park that operates a parking lot tram.*** This post was edited by greatwhitenorth 11/3/2005 9:10:02 AM ***

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Thursday, November 3, 2005 9:11 AM
Cypress Gardens operates a parking lot tram and add BGW/BGT to the list of parks that has Premium Parking.

Just to be fair and I'm not pro-Snyder. I don't think we've seen Snyder's ideas just the ones Six Flags "says" aren't working and wants us to see.

*** This post was edited by coasterguts 11/3/2005 9:13:30 AM ****** This post was edited by coasterguts 11/3/2005 10:42:10 AM ***

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Thursday, November 3, 2005 10:07 AM
More from Da Post
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Thursday, November 3, 2005 11:28 AM
A lot of Six Flags parks already do the premium parking strategy as well, I know Six Flags Over Texas does.
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Thursday, November 3, 2005 12:05 PM
I guess I just don't pay enough attention to what other parking options are available at the SF parks I visit to know that some already offer premium parking. I usually arrive early enough to get a close enough space anyway, and I remember that up until last year, SFGA had the lot close to the season pass enterance. In the case of SFNE, I don't mind riding the tram. I guess I just wouldn't pay for premium parking, but if others like it, go for it. Now if it was available as a one time "season parking" type pass, I may consider it.
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Thursday, November 3, 2005 3:56 PM
SFOG has premium parking also and they charge a whole $2 extra. I wouldn't mind seeing it go up to a $5 difference, it seems sort of dumb to me to have such a small difference.
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Friday, November 4, 2005 7:21 PM
Well, I think we'll have lots to talk about this winter of 05/spring 06. I think Snyder is just way off base. I think selling the company to someone else (maybe someone with actual themepark experience) is the right thing to do, even if that means that not all the parks get picked up in the process.
*** This post was edited by Intamin Fan 11/4/2005 7:23:18 PM ***
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Saturday, November 5, 2005 12:43 AM
When you read the articles, notice that neither side mentions things like "improved customer service" "providing a family-friendly atmosphere" "clean, well-maintained parks and attractions" "offering customers value for their dollar."

Instead there's a whole lot of talk like "ability to enhance the share value," "...our sales process," "potentially destructive of shareholder value," "obtain maximum value for all Six Flags stockholders."

It's pretty apparent where the present and potential future mindset of the company is. The only difference is between the devil you know and the one you don't. No matter which side prevails in this battle, and whose "vision" is implemented, I think that any improvement in the experience for the average park-goer will be totally coincidental, or at least will be well-financed by the customers.

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Saturday, November 5, 2005 10:53 PM
Well, RGB, the reason they haven't mentioned any of those things is because they did all those things last year);
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Monday, November 21, 2005 12:27 PM
I personally think RedZone LLC is what SixFlags needs to get it's head out of it's rear loading dock at each of its themeparks. I see a lot of pro Dan Snyder and equal pro PKS (SixFlags) support on this forum.

First before I respond let me say that I work for a company that sells to Six Flags and I have personally met and or spoken to middle and senior management staff members at Six Flags headquarters in Okalahoma. In short let me say that I was not impressed. The current Six Flags management is similar to what you what see at a government contractor supporting an overbudget mediocre government project. They lack the vision of it's individual park managers and more importantly fail to understand the needs of its customer or consumer. For those of you who have never worked in the government sector this comparison is far from a compliment to Six Flags, Inc.

As for the potential hostile take over of Six Flags I say let RedZone LLC take a shot. I say this both as a customer / park patron, but also has a professional in the business sector. He can't do any worse than the current team, which in my mind has slowly ran the business into the ground. Keep in mind that the primary goal of Six Flags sellling the company is not what's good for the park, the rides, or consumer, but what is good for the stock holder or more importantly individuals within the management ranks that stand to loose or gain during the sale or acquisition of Six Flags (i.e. employee stock options). I am not saying that Mr. Synder has all the anwsers, but what I am saying Six Flags currently lacks the vision and the ability to be successful and you should take whatever they release in public with a grain of salt. It is very obvious the current senior management team is ineffective and what Six Flags needs is fresh perspective from those who have not drank from the Oklahoma punch bowl. Also one other reason I site Dan might be the man, he sees the value of not randomly selling off Six Flags assets, such as Astroworld in Houston. Six Flags goal of selling this 36-year old park has nothing to do with its operations or profits (which have been hampered by Oklahoma), but how it can make the stock holders a quick buck by selling the demolished property to the local area sports authority or developer.

Anyway anyone interested in reading about that fiasco can read all about it on http://www.saveastroworld.com. It is not my site, but it does link you to a number of other coaster related sites.
*** This post was edited by Services_Manager 11/21/2005 12:38:13 PM ***

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