PKI worth $200 million and attracting big names

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.

Read more from Cincinnati Business Journal.

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Friday, February 24, 2006 8:56 AM
Jeff's avatar I don't know... I think that's a pretty good deal for PKI, especially given the size of the plot of land it sits on.
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Friday, February 24, 2006 9:55 AM
And the fact that it's a successful park and not one in need of help (like Six Flags Worlds of Adventure was a few years ago).
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Friday, February 24, 2006 10:14 AM
rollergator's avatar ....just thinking (I know, dangerous, esp. when it's me)...

How much has the *disastrous* decision-making re: Sonny affected the view of this park in particular throughout the chain?

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Friday, February 24, 2006 10:40 AM
eightdotthree's avatar I would so love it if Busch or Universal were to go for it.
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Friday, February 24, 2006 10:44 AM
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...?
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Friday, February 24, 2006 10:56 AM
I wouldn't read too much into the article. It's a bunch of analysts reading tea-leaves and trying to figure out what is going to happen.

Remember: Those who know, don't tell. It's as valid for park sales as it is for new cap-ex.

--Dave Althoff, Jr.

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Friday, February 24, 2006 11:07 AM
As I was driving down through Cincy yesterday, I saw a Maple leaf that hit my window and it looked like it had six flags on it ;)

Ahhhh the humor that would happen if Six Flags came into Ohio...again....well if you don't count Wyandot Lake that is.

I would prefer Busch if I had 2 cents...but if I had 2 million that's a different story. And yes, that seems kind of low for PKI.

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Friday, February 24, 2006 11:09 AM
rollergator's avatar Agreed Dave...but I too think that "as much as $200M" seems to be low-balling the value of ALL of the combined assets of the park.

Granted it's still early, but....

Oh, and Busch and Universal, while well-run for the most part, have HOW much experience dealing with wooden coasters? How much GOOD experience? THAT wood concern me, greatly... ;)

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Friday, February 24, 2006 11:53 AM
janfrederick's avatar Sweet! The California Mega Millions lottery is up to $200 million today. You'll soon be visiting me in my new Eiffel Tower apartment at King Eric's Island. w00t!
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Friday, February 24, 2006 12:01 PM
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.

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Friday, February 24, 2006 12:02 PM
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 ***
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Friday, February 24, 2006 12:14 PM
rollergator's avatar 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...

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Friday, February 24, 2006 12:14 PM
Arent't there other independant parks in Ohio though?
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Friday, February 24, 2006 12:15 PM
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).

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Friday, February 24, 2006 12:38 PM
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.
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Friday, February 24, 2006 1:05 PM
If I had known PKI was going to sell for that low I would have bought a Power Ball ticket a week ago.
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Friday, February 24, 2006 1:24 PM

Sweet! The California Mega Millions lottery is up to $200 million today. You'll soon be visiting me in my new Eiffel Tower apartment at King Eric's Island. w00t!

Kewl! Party at janfrederick's place!!!

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Friday, February 24, 2006 1:31 PM
If the government is worried about monopolies they should turn their attention to Wal-Mart and leave the amusement parks alone.
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Friday, February 24, 2006 1:44 PM
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.
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