Wall Street Journal Six Flags and Cedar Fair are on the verge of a merger agreement.
According to the Wall Street Journal, a deal to combine Six
Flags and Cedar Fair Entertainment, two of the biggest regional theme park
operators in the United States, is getting closer to completion.
This week may see the announcement of a deal between the two corporations. Cedar Fair is the owner of theme parks all throughout the country, including Knott's Berry Farm
in Buena Park, while Six Flags runs 27 parks in the United States, Mexico, and
Canada.
The Journal stated that the combination of the two businesses would strengthen Six Flags' park portfolio, particularly in the Midwest. Although it's unclear if any parks
would adopt the Six Flags name, the merger would also bring Cedar Fair into the
fold of a well-known national brand.
The market prices of both businesses are $2 billion or less. Following the announcement of an impending acquisition, shares of Six Flags surged by more than 6% and those of
Cedar Fair by more than 8%.
From the time it declared bankruptcy in 2010 until the pandemic caused it to close, Six Flags'
stock price increased gradually. The Journal stated that since then, the
business has had difficulty recovering.Disney and Universal, on the other hand,
primarily rely on visitors arriving in the area for extended stays, whereas Six
Flags and Cedar Fair parks serve the local population, according to WSJ.