Six Flags puts itself up for sale

I think we're overlooking that this is a play to keep Snyder from making his tender offer. The stock is trading at $7.27 right now, well over his proposal for $6.50. The funny thing is that the company still only has a market cap of $676 million, 40% of Cedar Fair's value with five times the number of parks. Sad.

This is an intersesting strategy.

By announcing this, the stock price will jump up high enough to make Snyder's tenure offer mute (currently 7.26 vs 6.50). It will also increase the overall capital valuation of the company putting them in better position to refinace debt at lower rates.

Yet I doubt anyone would want to take on the inflated asking price for the company due to the massive debt load, so Keiran gets to keep the company with a better financial position.

This has got to really cheese Red Zone LLC.

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This has got to really cheese Red Zone LLC.

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Well, they're not playing tiddlywinks.

Pardon my ignorance; maybe some of you with better understanding of business can set me straight.

If Snyder announced his intention to buy controlling interest, then sold his stock instead, would he be in hot water for manipulating the price?

On the other hand, if Burke and company counter with a move that causes the stock price to climb, can Snyder then sell his stock free and clear and pocket the profits?

Is the move on Burke's part a "poison pill"? I hear the term in the news but have never been sure exactly what it meant.

My quick question is if someone were to buy the company, will the company's stock sticker remain and not cause the people who have invested in it to lose thousands of dollars or millions. I just recently invested a couple of months ago when it was down to like 3.80, I've aquired 4500 shares now. I've gained a couple thousand dollars with these 2 big jumps this month.

Disney made a similar move when Roy Disney left the company and started to complain about the stock value. Maybe Roy did not get exactly what he wanted and maybe neither will Snyder. But at least it shakes up the Board a little and gets them looking at what they can do to make the company better. The move could end up biting them in the @$$ so to speak....or it could end up being the best thing they ever did. I would definitely call this move a poison pill as it is really intended to thwart off a hostile takeover bid and what Snyder was saying he would do is essentially a hostile takover bid.

If someone bought the company, you would be paid for your shares...you would not lose your money.

Now, depending on how the purchase is done, you might get cash or shares in the company that is purchasing Six Flags.

FYI, here's an interesting Motley Fool article written about SF prior to this announcement.

Bogeymon -
The "poison pill" is a provision that floods the market with cheap PKS stock if one shareholder gets over a certain percentage. It dilutes the power of that shareholder, brings down the price overall, and prevents a hostile takeover.

MagicMike - Yes they would be in deep trouble unless they file a form showing their new intent to sell.

So, how long do you guys see this taking? I've seen attempts like this go a few days to weeks, months and years.

Lol

You guys are so funny! I love April Fools jokes........

*lookes at date*

Oh.

WOW. Yeah, I NEVER saw this one coming. I don't think this will bode well for new projects and poor performing parks........

Thing is, They are trying to keep Snyder from gaining control but by doing this. He might get the whole smack for less than he was offering to begin with. Sure the stock price went up today on this news but by auction time it could be less than his offer. Didn't it go down to like $3 a share at one point?

Chuck

Six Flags did leverage itself into the ground, but out of that came alot of new coasters. Whatever happens to the company in the future, I hope that coasters continue to be the main focus of all of the parks.

I cannot fully grasp the implications of this announcement. It really suggests how poorly the amusement park company has been managed, which comes as no surprise. And what does it mean for the SF coasters planned for next year? like the flying coaster at SFMM, Goliath at SFOG, and the new wood coaster at SFGA.

So what do you think wil happen to SF employees? Will we be told of this at work? Could we lose our jobs?

No. It likely won't be any different than when Time Warner and Boston Venture sold their portions of the company to Premier in 1998. Day-to-day will continue as normal.

It depends if they change their child labor laws. It could also mean a pay raise since they can't pay less than minimum wage.

What do child labor laws have to do with this?

Here's my $.02 on this. I am not a fan of Six Flags current management because in general they're clueless. When people scaled back trips after 9/11 they should have marketed the fact that they're a vacation in most people's backyards. When times were tough they cut budgets like with cleaning supplies and maintenance so parks would only run one train on slow days, food prices 3 or more that of real world prices or raised parking prices to insane levels. The thing is these things and others have drove SF's core market, families to other venues rahter than through their turnstiles.

While I want to see SF's management gone I haven't heard the greatest thing about Snyder so all of my fingers are crossed that someone decent with a brain comes out of left field to pick up the ball and runs with it because as a coaster enthusiast I want a profitable and successful Six Flags.

This is standard operating procedure for a company trying to defend against what management views as a hostile takeover. They announce that they might sell, the stock price goes up and the tender offer doesn't look so good.

I wouldn't even take it very seriously at this point. They're following the book on how to avoid a takeover. Nothing more at this point.