Posted Friday, February 24, 2006 8:53 AM | Contributed by coasterguts
Paramount's Kings Island, the Mason theme park now on the selling block, is expected to fetch a purchase price of as much as $200 million and attract some of the biggest names in the entertainment industry, observers say.
Universal is in the mix... Did I miss something? Weren't they, at best, luke warm to the idea of holding onto the parks the last time this was discussed? Also, I realize the sale will probably be all or nothing...BUT $200 mil seems crazy low for PKI. Just do the math on the coasters. Add the land value...THEN consider the attendance levels...? There has to be some debt or something we do not know about! High operating costs maybe...?
Although, when Paramount Communications bought the four (Wonderland wasn't part of the original purchase...) KECO parks in '92 the reported purchase price was $400 mil. So, basically $100 million each...which would mean PKI has increased its value 100% in the past 13 years :-)
RideMan is exactly right...there are no real new "facts" in this article. It's pretty much all speculation on the part of analysts... It would make sense that any park company would go out and kick the tires whenever an opportunity like this presents itself, but there have been no public statements from Busch or NBC-Universal stating they have any real interest.
I don't think Cedar Fair can buy it, because that would give them a monopoly in Ohio. I woul hope that the government would stop such a thing. *** This post was edited by coasterkitty 2/24/2006 12:04:34 PM ***
ROFL! Theme park monopoly in Ohio? Have you noticed the business environment in this country in the last, say, 20 years...
If my math is correct, 100% increase in value over 13 years means *about* 5%/year. Considering all the additional investments paramount has put in at PKI since then, that sounds like SFWoA all over again....not quite THAT bad, but certainly a lower RoI than I would expect...
I saw the words "Mason theme park" in the original post and said Whoooooa! (How DO you recognize a Mason?)
From the tone of the article, it sounds like CBS may consider selling the parks individually and not necessarily as a package deal. Just the way they put individual prices on the park. Or did I misinterpet something? Business-wise it seems to be a better decision to sell the whole portfolio off to one bidder-- If you have bidders willing to shell out a billion bucks or more.
I also found it interesting where they note that attractions tied to Paramount films are expected to remain, and that CBS considers that a necessary part of the sale. Why would Universal, or even CF or AB, be interested in promoting Paramount products?
Maybe they could throw in Williams Grove as a bonus-- you know, like if you call within the next 10 minutes (wishful thinking).
I really think they were just breaking out PKI's "share" since it's from a local Cincinnati business paper. The speculative price for the chain is in the neighborhood of $1 Billion, so that would basically break out to $200 mil for each of the five parks... Of course, not all the parks would actually be of equal value if sold separately.
re: the comment about Cedar Fair having an Ohio monopoly- Didn't Six Flags have a monopoly in Texas with 3 big theme parks? I don't think that would be an issue, especially if it comes down to the park being closed or remaining open with a new owner. I doubt many people want to see the park close, as it's a major tourist destination.