SeaWorld Makes $3.4 Billion Takeover Bid for Cedar Fair

[Parkscope Joe]

Part of a takeover bid means acquiring non-capital assets too. I’m sure SeaWorld recognizes their bad management and sees Cedar Fair as an opportunity to bring in better talent for operations.

You guys are getting confused thinking SeaWorld making the bid=SeaWorld cleaning house. That’s rarely how acquisitions work. Most times there’s mutual benefit in a bid, and Cedar Fair actually brings a lot of benefit to SeaWorld. SeaWorld just happens to be more liquid right now, so they make the bid, but a lot of the superior talent on the CF side will survive and exist to make the SW parks better too.

Good point, but I still doubt it. CF has been making deals with Sandusky to keep the HQ in the city and a buy out from SW would have to account for that.

 

[Magic-Man]

My home park is Busch Gardens Tampa. Keep SWE the hell away from CF. They'd mess up Kings Island.

 

[JaySalahi]

Just looking through the lens of my home park, Knotts, as much as I love the seaworld and Busch parks. The current Knotts Berry Farm management knows exactly what they are doing and I’d like to see them continue.

 

[GAcoaster]

I'm still trying to figure out why everyone thinks their favorite CF park would in any way suffer if SeaWorld bought them out.

I really can't see them coming in and making drastic changes to most of the CF parks. The only real changes I could see from the outset would be pricing of tickets and passes, but operationally I don't see them changing something that works. The biggest parks in the chain CP, CW, KI, KD, Carrowinds, Knott's all seem to be running well. I don't see them being stupid and just changing things for the sake of change. EVERY park has its own style, its own way of operating. Especially the seasonal parks like CP and CW that just bring in crazy amounts of guests in just a few short months. They have formulas for what they do and they work. The ownership of the company would have little impact on most day to day stuff.

It just wouldn't make sense for SeaWorld to step in at a park like Cedar Point and say "You're too efficient, slow everything down!".

Will they make changes that piss off some people, without a doubt. You'll never make everyone happy. But Cedar Fair has made changes that piss people off and always has. They'll sell more Quick Queue and raise the price for it on a sliding scale. They'll have sliding scale pricing on parking. So what, that's the direction the entire industry is going. It works to keep the business profitable. It is a business.

They'll also make passes feel like they're worth the money. No park chain offers the discounts and deals that the SeaWorld parks do. It makes passholders feel great loyalty to the parks when they see the value in their pass. In turn they spend more in the parks.

We're talking about two park chains that each have a good track record. Each brings its own culture and history to the relationship. Never assume the purchasing company will make the acquired company change everything they do. In my experience with companies involved in mergers and acquisitions quite often the company acquired was purchased because they have something that improves the entire operation. I worked for a software company and we acquired our biggest competitor. We ended up taking on many of their systems and practices because they worked better than what we did. That's part of any merger.

Just looking through the lens of my home park, Knotts, as much as I love the seaworld and Busch parks. The current Knotts Berry Farm management knows exactly what they are doing and I’d like to see them continue.

Remember when CF bought Knott's and how they ruined it? That was all anyone said when THAT acquisition happened. They made mistakes, and then made fixes. It's the way business works.

 

[JaySalahi]

Remember when CF bought Knott's and how they ruined it? That was all anyone said when THAT acquisition happened. They made mistakes, and then made fixes. It's the way business works.

You’re talking about 20 years ago now. So it’s irrelevant. I think the current Knotts management is showing its doing fantastic and I trust them for the next 5 years of Knotts future than a new company that’s struggling taking over.

Yes Seaword has great food and at times drops rock work cash. But I don’t want a company that’s had new managent cycled in and out every 9 months it seems compared to a cedar fair that has shown improvement every single year recently and has been stable.

we also have no idea what would change if any, no clue or way to know what would happen with management. But I also think competition is a good thing. I do not want less major theme park company’s.

 

[GAcoaster]

Yes, it was 20 years ago, and for 10 years all CF did was "ruin the park" according to most people. Then all of a sudden they didn't? They run several "unique" parks, one more isn't going to be that different.

 

[OhHaiInternet95]

That was pre pandemic.

The world is a different place.

I just can't see Seaworld being in the financial shape needed.

 

[Moose84]

Just food for thought as people love to point out the previous offer made by Six Flags was higher , there offer was mainly stock that also was declining at time of bid. Taking stock instead of cash while declining means great risk as well as no guarantee. Your not planning on the future but praying for. Now SeaWorld has offered less it is mainly cash, guaranteed, which means your actually getting what’s offered. When buy outs of large companies occur stock can be an asset, Disney buying Fox, makes sense for market share and stock evaluations. Now six flags offering CF stocks, no thanks, hell I think SEAS offering stocks is a no. Yet SEAS offering mainly cash and well above market value currently is very interesting. Still would rather them invest in there own parks over additional.

One last thing Disney was forced to go above and beyond Comcast’s bid because Comcast’s bid was more cash. Also does anyone think if it wasn’t Disney, with stock averaging great increases over the last few decades, that fox would go with stock over cash? No but that’s a company ain’t no one concerned with(sadly), but comcast can’t offer the stocks. Sometimes future can be better but, and sadly, if SixFlags declared bankruptcy in the next year or so no one would be surprised burying stock and causing all parks to struggle or shutter.

Just remember price is not the actual offer folks.

 

[JaySalahi]

[/QUOTE]

Yes, it was 20 years ago, and for 10 years all CF did was "ruin the park" according to most people. Then all of a sudden they didn't? They run several "unique" parks, one more isn't going to be that different.

Have you even been to Knotts? Just curious

I've had a season pass for 18 years since I was 11. In the Last 9 years the changes have been insane. I cant go into every little detail but every single corner of the park has been or is being touched up. To sum it up and or 10 years I DREAMED of this little area where there was once a game stand to be transitioned into a nice little themeing area and tree... Well they did just that. They took out a game stand and replaced it with a nice little corner of themeing. That shows care. I can list 100 things this small all over the park. Snap, we just got really nice new trash bins all over the park this year already!


Not to mention things like , Re doing Ghostrider dreamed of that, Check!

- Dreamed of a new better Dark Ride, Berry Tales, Check. And the area looks 5x better. They added themeing/brick to walls that never had themeing before in the area. Adding lighting over the the land, a full repaint, Redid the whole marquee for the theater, now they are doing the new pizza and beer place right in the same corner. Always dreamed of revamp there too.

- For 20 years people have been dreaming of animatronics on Big foot Rapids. We got that too!!! Taking a 30 year old ride and adding themeing, a story, and the nicest queue room in the whole park.

- Not to mention they took out a Giant Thrill water ride and instead added 3 family rides and new lighting to the boardwalk.

- They stopped a giant B&M from destroying the atmosphere over ghost town and instead spend the money to Redo the Log Ride and the Mine Ride.

- Montezoomas is being saved and redone was another dream ive had. its being done. And I promise you the whole area and ride will look so much better. All the cheap walls and gates will be redone and no longer look 70s.

- Even Hangtime replacing Boomerang was a major win. replacing a thrill for a thrill but the new ride improved the look and feel of the whole area not only with its its lighting package but its dive coaster concept.

- The new Boardwalk BBQ!!! Do you remember that terrible outdoor queue pizza shack before then? They even have a stage and live music in the seating area.



Plus Knotts over Christmas when I went had like 8 different shows, all great, they have more live entrainment than Disneyland these days. The amount of little projections they have added around the park too and streetmosphere is so impressive too. Every time I go I notice new things and more and more improvements.

Anyways whats funny is a I LOVE seaworld parks and would rank there parks above CF. But I know Knotts and now more than ever do I feel like the people in charge not only get knotts but truly care about the park and its history .

 

[GAcoaster]

I have been to Knott's several times over the past 20 plus years.

CF put in that monstrous water ride, then fixed their mistake.

CF was going to build that B&M (not B&M, they don't just decide to build a ride in a park unsolicited)

CF put in Windseeker.

CF installed Silver Bullet and broke theming.

Yes- lots of good things have happened, but CF screwed up royally first.

All of those good things you mentioned have happened only after CF leadership changed. They made a lot of mis steps BEFORE they finally figured out you need to let Knott's be Knott's. There's no reason to think SeaWorld would make the same mistakes on that scale.

 

[JaySalahi]

I have been to Knott's several times over the past 20 plus years.

CF put in that monstrous water ride, then fixed their mistake.

CF was going to build that B&M (not B&M, they don't just decide to build a ride in a park unsolicited)

CF put in Windseeker.

CF installed Silver Bullet and broke theming.

Yes- lots of good things have happened, but CF screwed up royally first.

All of those good things you mentioned have happened only after CF leadership changed. They made a lot of mis steps BEFORE they finally figured out you need to let Knott's be Knott's. There's no reason to think SeaWorld would make the same mistakes on that scale.

What are you even talking about? serious question? I have no idea hahah I never said SeaWorld would do worse, or that SeaWorld would make the same mistake, I actually never said once mention anything good or bad about SeaWorld originally (and still havent said a single negative thing about them) haha I said nothing about what they would or could do.

I simply said I like the knott's management now and would like the people who are NOW doing a good job, to continue to do a good job.


I'm saying I like the Head coach we have now of our team and I'd prefer to keep them. You are yelling but WHAT about the coach did 23 years ago!!! I have no idea what that has to do in anyway, shape or form about deciding to get a new head coach or not, now.

Just like I have no idea how does Perilous Plunge opening in 2001 has any relevance on if I think the CURRENT Knotts management is doing a good enough job to keeping doing it.

You asked why would anyone still want CF? I responded based on my Home Park. And you keep naming stuff 20years that legit has nothing to do with what were talking about haha

Plus as already pointed out by others. If you look at the last few major coasters each company built, CF themed and gave the rides a lot better place making than SeaWorld. Emperor doesn't even a have a station cover. Nothing in Knotts is that slapped together and they would NEVER do that to a new ride with this current management.

 

[OrlLover]

Someone should add a poll to see if people actually believe this would go through. Personally I don’t think so despite Sea World doing much better now compared to a couple of years ago. I would probably wait a tad longer if I was them.

 

[Evan]

Someone should add a poll to see if people actually believe this would go through. Personally I don’t think so despite Sea World doing much better now compared to a couple of years ago. I would probably wait a tad longer if I was them.

Sure, poll added!

 

[UniversalRBLX]

What's insane to me is that Epic Universe is like 1/2 the cost of CF entirely lmao

 

[GAcoaster]

So one week later and no news, but it's important to note that when Six Flags offered in 2019, Cedar Fair said no within two days. My guess is they're weighing the offer and creating a counter offer.

Here's some analysts takes on the possible merger:
What Does Wall Street Think About SeaWorld's $3.4 Billion Offer for Cedar Fair? | The Motley Fool

Cedar Fair is having their quarterly earnings report next Wednesday, so I'm guessing we'll hear something more then. If for no other reason than there will be questions in the Q&A portion.

 

[shiekra38]

So one week later and no news, but it's important to note that when Six Flags offered in 2019, Cedar Fair said no within two days. My guess is they're weighing the offer and creating a counter offer.

Here's some analysts takes on the possible merger:
What Does Wall Street Think About SeaWorld's $3.4 Billion Offer for Cedar Fair? | The Motley Fool

Cedar Fair is having their quarterly earnings report next Wednesday, so I'm guessing we'll hear something more then. If for no other reason than there will be questions in the Q&A portion.

The more I think about it, the more I don't hate it

Whatever, I'm buying SW stock

 

[GAcoaster]

Interesting development: The SeaWorld Buy Out Of Cedar Fair Just Took An Interesting Turn

The thought is this will eventually happen one way or another.

 

[shiekra38]

Interesting development: The SeaWorld Buy Out Of Cedar Fair Just Took An Interesting Turn

The thought is this will eventually happen one way or another.

Bring on Seal Vengeance

 

[Freak]

Centerbridge huh?

If this purchase does go through, I’m really concerned about Knott’s future. CF is doing such a swell job running it, I’m concerned that whoever will take over will plunge it back to the Falfas/2000’s era again, if not worse.

 

[GAcoaster]

SeaWorld's stock went to its all time high today: SeaWorld Entertainment, Inc. (SEAS) Stock Price, News, Quote & History - Yahoo Finance

I have to wonder if there may be some news coming in tomorrow's earnings call from Cedar Fair...