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SeaWorld Makes $3.4 Billion Takeover Bid for Cedar Fair

lazyboy97o

Well-Known Member
Don't get me wrong - they're beautiful parks. It's been a while since I've been to Williamsburg and I've never been to the other two SeaWorlds, but SeaWorld Orlando, and even moreso Busch, have horrible operations and guest service. We mock Six Flags a lot on here but I do believe some Six Flags have better operations and guest service than SWO and BGT.
For awhile now it seems like Busch Gardens Tampa has been the park to bear the brunt of any cuts made by corporate. One train operations on busy days and entire chunks just shuttered for years.
 

seascape

Well-Known Member
Reading the CNBC reporting, it appears that Cedar Fair will likely accept a $70.00 a share offer because they think $60.00 is too low. In other words they would accept the Six Flags offer from 2019. I wonder if Seaworld can afford that or if another company would pay that much.
 

matt9112

Well-Known Member
Reading the CNBC reporting, it appears that Cedar Fair will likely accept a $70.00 a share offer because they think $60.00 is too low. In other words they would accept the Six Flags offer from 2019. I wonder if Seaworld can afford that or if another company would pay that much.

SEA should counter with 64 and tell them to kick rocks.
 

Lilofan

Well-Known Member
Personally I believe the best asset Seaworld is after is Cedar Fair's management. If this merger goes through I expect the combined park to be managed by Cedar Fair's leaderahip. Seaworld may be the more valuable company but that Cedar Fair's has better management.
Executive Chairman, formerly CEO of Cedar Fair is Matt Oimet. He is a former cast member who was President of DLR. With mergers and acquisitions there are always layoffs.
 

seascape

Well-Known Member
Cesar Fair should not just accept this offer. First they should decide if selling may be a good idea for their shareholders and if it is, they should ask Seaworld for more money but also ask for offers from other companies. There is no reason to just talk with one company if they are going to take a cash offer.
 

Jrb1979

Well-Known Member
Cesar Fair should not just accept this offer. First they should decide if selling may be a good idea for their shareholders and if it is, they should ask Seaworld for more money but also ask for offers from other companies. There is no reason to just talk with one company if they are going to take a cash offer.
I doubt they are going to sell. Cedar Fair is heading in a good direction now. While it sucks for those smaller Cedar Fair parks as they don't get many big additions, the big 4 of Canada's Wonderland, Kings Island, Carowinds and Cedar Point are some of the best parks in North America.
 

seascape

Well-Known Member
I doubt they are going to sell. Cedar Fair is heading in a good direction now. While it sucks for those smaller Cedar Fair parks as they don't get many big additions, the big 4 of Canada's Wonderland, Kings Island, Carowinds and Cedar Point are some of the best parks in North America.
We won't have to wait too long as Cedar Far's earnings call is February 16, just 11 days away. I wonder if Seaworld or anyone else would be willing to pay 4 billion because many news stories indicate that would be the amount Cedar Fair would take. Remember this, the Board has the legal obligation to act in the interest of the shareholders. A price of 4 billion would be over $70.00 a share.
 

seascape

Well-Known Member
I can't believe there has been no news yet. Not a peep from either company nor Six Flags making an offer. That said, the all cash deal is bad for themepark fans as it will leave Seaworld with too much debt. However, based on the increase in Seaworld stock, a deal of 1 share of Seaworld for every share of Cedar Fair along with a small sum of cash to bring the price to $73.00 a share on a given date could get this deal done. That would add a small amount of debt but nothing that bad.
 
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seascape

Well-Known Member
Cedar Fair is only 48 hours away from releasing their quarterly earnings and 51 hours away from their earnings call. They have to expect the merger offer is the biggest question they will get and they need to have an answer. What will they do? Are there other offers? Remember Disney wanted to buy Knotts but lost to Cedar Fair. Would Cheapsteak Bob decide to go after them and use Knotts as a third gate in California? Would he decide that the old Cedar Fair proposal to build a thrill park in Orlando was a good idea and build it just west of Flamingo Crossing? Would he decide Disney should have a park in Virginia? Would
he expand DVC to other parks? Dorney Park is not too far from tons of DVC owners who are also WDW Passholders. Giving them a small bonus of being able yo go to another park near them would be nice. I know this is probably not going to happen but it would be nice if it did. On the otherhand buying Seaworld would accomplish the same thing and without having to build something else in Orlando.
 

some other guy

Well-Known Member
Cedar Fair is only 48 hours away from releasing their quarterly earnings and 51 hours away from their earnings call. They have to expect the merger offer is the biggest question they will get and they need to have an answer. What will they do? Are there other offers? Remember Disney wanted to buy Knotts but lost to Cedar Fair. Would Cheapsteak Bob decide to go after them and use Knotts as a third gate in California? Would he decide that the old Cedar Fair proposal to build a thrill park in Orlando was a good idea and build it just west of Flamingo Crossing? Would he decide Disney should have a park in Virginia? Would
he expand DVC to other parks? Dorney Park is not too far from tons of DVC owners who are also WDW Passholders. Giving them a small bonus of being able yo go to another park near them would be nice. I know this is probably not going to happen but it would be nice if it did. On the otherhand buying Seaworld would accomplish the same thing and without having to build something else in Orlando.
I don't keep up with the current dirt, but I can't see it as an acquisition for the Mouse of today. iirc Cedar Fair already floated a higher figure at Sea World if they wanted to talk, so Disney would presumably have to beat that, and they've got a ton of active land already and a lot they can develop how they want.
Maybe back in the days of DisneyQuest and other "Disney Lite" semi-parks it would have probably fit into those plans better.
Sea World seems to be a better fit for the "a hodge-podge of a bunch of parks" approach.
 

DCBaker

Premium Member
"In response to inquiries from various stakeholders, we confirm that our offer to acquire Cedar Fair was rejected. Unfortunately, we do not see a path to a transaction."

 

seascape

Well-Known Member
"In response to inquiries from various stakeholders, we confirm that our offer to acquire Cedar Fair was rejected. Unfortunately, we do not see a path to a transaction."

I am not surprised. Now it will be very interesting to see how the market responds and the conference call tomorrow. Right now the after market has Cedar Fair down 11.5%.
 

Mousertainment

Well-Known Member
"In response to inquiries from various stakeholders, we confirm that our offer to acquire Cedar Fair was rejected. Unfortunately, we do not see a path to a transaction."

Translation in non-business-speak: "They were all 'yeah, no'." :D
 

maxairmike

Well-Known Member
I'm glad CF rejected this, as this didn't appear to be about improving the actual parks side of the business and entirely about pumping up the supposed value of SEAS for the PE stakeholder(s) to get a better potential cash-out. It would almost certainly have been a losing proposition for fans and the industry with certain parks getting shuttered or sold.
 

seascape

Well-Known Member
Seaworld made the right decission to stop at $63.00 a share. Cedar Fair is down to $61 million in cash. Yes, Cedar Fair said they have money because of their line of credit but they have to make it through the first quarter, which should reduce it more and they want to start paying dividends by the third quarter. They are not in danger of going out of business but their shares are down to under $58.00 and so how will they grow it to exceed the $63.00 Seaworld offered. So did the Board act in the best interest of their shareholders? I say no, but I sold my shares a couple days ago. Seaworld by the way is up again, showing Wall Street believes they are better off without Cedar Fair than they would be if the deal had gone through.
 

DisneyFan32

Well-Known Member
In the Parks
Yes
Seaworld made the right decission to stop at $63.00 a share. Cedar Fair is down to $61 million in cash. Yes, Cedar Fair said they have money because of their line of credit but they have to make it through the first quarter, which should reduce it more and they want to start paying dividends by the third quarter. They are not in danger of going out of business but their shares are down to under $58.00 and so how will they grow it to exceed the $63.00 Seaworld offered. So did the Board act in the best interest of their shareholders? I say no, but I sold my shares a couple days ago. Seaworld by the way is up again, showing Wall Street believes they are better off without Cedar Fair than they would be if the deal had gone through.
I think after Warner Bros-Discovery merged by April or May. Then the company will acquiring Six Flags next.
 

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