Posted
Six Flags Inc. on Thursday said its board of directors has unanimously decided to sell the company through an auction process, one week after a dissident shareholder offered to raise his stake in the amusement-park operator and replace its management.
Read more from AP via Yahoo (updated).
As I think about it, it is their last ditch attempt to block Snyder by trying to make him buy the whole company outright rather than just a controlling interest. It will be harder for someone to come up with rnough cash to do a complete buyout versus a "controlled takeover."
*** This post was edited by redman822 8/25/2005 9:47:09 AM ***
I think we got three possible new owners unless a dark horse shows up. They are Snyder, Gates and someone with ties to Burke.
I hope Snyder gets is of the three. At least he won't bring in Windows: The Ride. Sorry we are experiencing technical difficulties please wait while the operator hits control-alt-del and reboots the ride. Or keep the current management in place like a friend of Burke would do. It's time for new blood at Six Flags.
Maybe now all of the parks will get fair & equal treatment when it comes to new cap ex decisions........keep in mind that under Burke's management the company exhausted most of it's cap ex budget which resulted in fewer ride built chainwide beginning in 02,new owners could come in,pay off some of the outstanding debt & infuse some much needed capital to pay for the new coasters & other additions lacking at most of their parks in the chain.
The little parks do add to the bottom line, and lots of little parks adds more to the bottom line, but for this corporation, the larger revenue parks pull the giant cash flow to keep things going.
You have to remember the current debt that the company has. If I remember right, it’s a big bunch. You’re not going to pay off long term debt by getting rid of your substantial cash flow generators, the little parks I would think would be the first to go.
But then again, I could be wrong.
You also have to look at what this buyout is going to do, additional debt financing for the new company, assumption of new debt, I don’t think it’s going to be pretty, unless Six Flags goes for a song…. And folks… that’s not going to happen.
I think that Snyder would be the best viable option for the growth of Six Flags as we now know it. The man knows how to run a business. He has the cash (and assets) to buy Six Flags, and just might be the saviour (obviously to early to term him our great savior).
Whatever happens I just hope that it works out for the best of each park.
In the real world, business decisions are not made with fairness, justice, or equity in mind. The only thing that counts is the financial impact. There is no conspiracy out there to deny small parks capital expenditures. Whether or not it is successful at making more money is a different story altogether.
*** This post was edited by Jophish 8/25/2005 12:28:12 PM ***
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