In terms of theme parks and amusement parks, Disney and Common get all of the press. Nonetheless, with regards to dimension, different corporations like Cedar Truthful and Six Flags are the true behemoths, with each having many extra places in North America. If rumors change into true, they might get even greater, because it’s being reported that Six Flags and Cedar Truthful are in merger talks. If this occurs, an announcement might come as early as Thursday morning.
Reuters is reporting that sources have advised them that the talks of a potential merger are taking place, although it’s unclear at this level if the 2 sides will attain an settlement. Six Flags and Cedar Truthful have mentioned merging beforehand with out coming to a deal, in order that definitely might be the place this finally ends up going as properly. That stated, with Cedar Truthful set to have its quarterly earnings name within the morning, one has to surprise if we’re on monitor for an enormous announcement.
If Cedar Truthful and Six Flags do merge, they’d develop into a fully large leisure enterprise primarily based on footprint alone. Cedar Truthful presently owns 11 amusement parks and 4 water parks, whereas Six Flags holds 15 amusement parks and 19 water parks. A sixteenth park in Saudi Arabia is presently beneath building.
Whereas each Six Flags and Cedar Truthful have struggled just lately, with attendance and income not bouncing again from the pandemic the best way they seemingly anticipated, a merger would seemingly assist each corporations financially if an financial downturn occurs, resulting in much less shopper spending on issues like amusement parks. They need to be capable of climate such a storm higher as a single bigger firm than they’d as two smaller corporations.
Six Flags has licensing offers with Warner Bros. that permit DC and Looney Tunes characters to look on sights and within the parks. Whereas Warner Bros. has its personal theme parks abroad, it has but to open one in North America. Cedar Truthful has the present licensing deal for Charles Schulz’s Peanuts characters. It appears seemingly that we might see a few of these common characters seem within the different parks if a merger occurs, and it’s not exhausting to think about different studios with common IP not being curious about licensing offers with a brand new firm that has so many places.
Cedar Truthful was the goal of acquisition as just lately as 2021 when SeaWorld reportedly supplied $3 billion to buy the corporate, a deal that Cedar Truthful in the end rejected. On the one hand, the earlier try at acquisition might point out {that a} merger is extra seemingly, although the truth that Cedar Truthful in the end stated no might point out that it’s prepared to take action once more except the deal is the fitting one. This may definitely be a really attention-grabbing earnings name.
