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SeaWorld Makes $3.4 Billion Offer to Acquire Cedar Fair

MLDesigns

Hyper Poster
Bloomberg is reporting that SeaWorld has made a $3.4 Billion offer to take over Cedar Fair. Take a look at the article:


Would be a WILD scenario if it comes to fruition.
 

MakoMania

Mega Poster
It’s a lot better than Six Flags or Parques Reunidos. Might get Intamins at Cedar Fair parks again.

I would argue if you’re looking solely at coasters, this may not be ideal (depending on what you want.) But I would argue the two Busch parks are an overall better experience and product than the Cedar Fair parks.
 

Wazzupnerds

Mega Poster
I think this turns into them buying some parks off them. I can't see CF letting go of core parks like CP, KI, KBF and CaroWinds throw Canada's Wonderland into that also.

100% could see Kings Dominion getting the axe if this does go through.

Also SeaWorld Kansas City is a good name.
 

Coaster_fan_07

Roller Poster
I think this turns into them buying some parks off them. I can't see CF letting go of core parks like CP, KI, KBF and CaroWinds throw Canada's Wonderland into that also.

100% could see Kings Dominion getting the axe if this does go through.

Also SeaWorld Kansas City is a good name.

I agree I don't see CedarFair giving away core parks but I can agree with the idea of the lower tier parks being removed.
 

VikingParrot

Roller Poster
All I do is track money, sentiment on companies, and where it's going. There's A LOT of money headed to FUN and SEAS as of 10:04 this morning. "Someone always knows" is a thing - leads me to believe that there's some credibility to this rumor, but we'll see.
 

Hyde

Matt SR
Staff member
Moderator
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#MakeGeaugaLakeSeaWorldOhioAgain

Definitely a wild bit of news, interesting too that it's reported as official unsolicited bid. Definitely curious where Cedar Fair would take the negotiation, if any were to happen.

To back up some of the bid offers, Six Flags did approach Cedar Fair on a $4B offer in 2019, which was turned down: https://www.cnbc.com/2019/10/04/ced...ffer-from-six-flags-sources-tell-reuters.html

Despite Covid setback, Cedar Fair has navigated the storm pretty well, so it'd be head scratching to see how they'd accept a lower offer 3 years later (on simple inflation alone, you don't just lose $600,000 in valuation).

To back peddle further, major Cedar Fair acquisitions include the recent Schlitterbahn purchase (two parks) for $261M in 2019 (https://ir.cedarfair.com/news/news-...hlitterbahn-Water-Parks-in-Texas/default.aspx), and the Paramount Park merger clocked $1.24B in 2006 (https://www.themeparkinsider.com/flume/200605/116/)
 

emoo

Mega Poster
I'm not precisely sure where the idiocy lies but I'm sure its abundant here.

- Really?
- When struggling to find people to over see the parks, get some more parks that may or may not be desirable?
- the never ending speculation which could well appear more well thought out
 

VikingParrot

Roller Poster
Cedar Fair has confirmed an offer has been made via Dow Jones Newswire:

"Shares of Cedar Fun L.P. (FUN) rocketed 14.7% toward a more-than two-year high in afternoon trading Tuesday, after the amusement park operator confirmed that it had received an unsolicited buyout bid from SeaWorld Entertainment Inc. (SEAS). The company did not disclose terms of the bid, but Bloomberg, which first reported the on the bid, indicated it was for around $3.4 billion. Trading volume spiked to 4.3 million shares, compared with the full-day average of around 309,000 shares. At the current stock price, which would mark the highest close since November 2019, Cedar Fair's market capitalization would be $3.24 billion, according to FactSet. SeaWorld's stock rose 4.2% in afternoon trading. " Consistent with its fiduciary duties, and in consultation with its independent legal and financial advisors, the Cedar Fair Board of Directors will carefully review and consider the proposal to determine the course of action that it believes is in the best interest of the Company and its unitholders," the company said in a statement. "Cedar Fair unitholders do not need to take any action at this time." Cedar Fair shares have now run up 21.3% over the past three months and SeaWorld's stock has lost 4.2%, while the S&P 500 has eased 1.9%.


-Tomi Kilgore


(END) Dow Jones Newswires
02-01-22 1327ET
Copyright (c) 2022 Dow Jones & Company, Inc."
 

Wazzupnerds

Mega Poster
Cedar Fair has confirmed an offer has been made via Dow Jones Newswire:

"Shares of Cedar Fun L.P. (FUN) rocketed 14.7% toward a more-than two-year high in afternoon trading Tuesday, after the amusement park operator confirmed that it had received an unsolicited buyout bid from SeaWorld Entertainment Inc. (SEAS). The company did not disclose terms of the bid, but Bloomberg, which first reported the on the bid, indicated it was for around $3.4 billion. Trading volume spiked to 4.3 million shares, compared with the full-day average of around 309,000 shares. At the current stock price, which would mark the highest close since November 2019, Cedar Fair's market capitalization would be $3.24 billion, according to FactSet. SeaWorld's stock rose 4.2% in afternoon trading. " Consistent with its fiduciary duties, and in consultation with its independent legal and financial advisors, the Cedar Fair Board of Directors will carefully review and consider the proposal to determine the course of action that it believes is in the best interest of the Company and its unitholders," the company said in a statement. "Cedar Fair unitholders do not need to take any action at this time." Cedar Fair shares have now run up 21.3% over the past three months and SeaWorld's stock has lost 4.2%, while the S&P 500 has eased 1.9%.


-Tomi Kilgore


(END) Dow Jones Newswires
02-01-22 1327ET
Copyright (c) 2022 Dow Jones & Company, Inc."
Based on my daytrading knowledge, it sounds like they might be taking this seriously.

Could be a fun few days.
 

Skyye

Mega Poster
Throwback to when SF made an offer for $4 billion and got turned down. I don't see this happening, especially since SeaWorld is smaller than Six Flags.
 

MakoMania

Mega Poster
It's not always about smaller/larger (within reason of course,) it's about your financial situation too. SeaWorld has a substantially lower debt load than Six Flags and Cedar Fair.
 

solarfall

Mega Poster
Is there any scenario where this goes through and SeaWorld DOESN'T absolutely gut Kings Dominion? This is giving me Geauga Lake vibes and I don't like it.
 
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