{"id":7564,"date":"2024-03-26T16:24:06","date_gmt":"2024-03-26T16:24:06","guid":{"rendered":"https:\/\/www.theparkdb.com\/blog\/?p=7564"},"modified":"2024-08-21T20:40:55","modified_gmt":"2024-08-21T20:40:55","slug":"thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster","status":"publish","type":"post","link":"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/","title":{"rendered":"Thrills, Spills, and Dollar Bills: Cedar Fair &#038; Six Flags&#8217;s M&#038;A Rollercoaster"},"content":{"rendered":"\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#The_History_of_Ride_Parks\" title=\"The History of Ride Parks\">The History of Ride Parks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#Stagnation_or_Stability\" title=\"Stagnation or Stability?\">Stagnation or Stability?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#Deals_as_a_Strategy\" title=\"Deals as a Strategy?\">Deals as a Strategy?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#Cedar_Fair\" title=\"Cedar Fair\">Cedar Fair<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#Six_Flags\" title=\"Six Flags\">Six Flags<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#Further_Contrasts\" title=\"Further Contrasts\">Further Contrasts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.theparkdb.com\/blog\/thrills-spills-and-dollar-bills-cedar-fair-six-flagss-ma-rollercoaster\/#The_Media_Strategy\" title=\"The Media Strategy\">The Media Strategy<\/a><\/li><\/ul><\/nav><\/div>\n\r\n<h1 class=\"wp-block-heading\" style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><strong>Introduction<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\r\n\r\n\r\n\r\n<p>On the news of the potential merger between Six Flags and Cedar Fair, we thought it might be worthwhile to look back at their history and consider their place in the attractions landscape. With their thrill park offerings, both chains occupy a distinct niche within the theme park industry. Both chains are also characterized by a reliance on deal-making.\u00a0 \u00a0<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-20-at-2.45.25-PM.png\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"405\" class=\"wp-image-7610\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-20-at-2.45.25-PM-1024x405.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-20-at-2.45.25-PM-1024x405.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-20-at-2.45.25-PM-300x119.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-20-at-2.45.25-PM-768x304.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-20-at-2.45.25-PM-1536x608.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-20-at-2.45.25-PM-2048x811.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n\r\n<p><iframe title=\"Thrills and Dollar Bills: the Journey of Cedar Fair &amp; Six Flags\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/8OZbYKZHQSs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Today, Cedar Fair and Six Flags are the two largest regional theme park operators (by park count) in North America. In positioning and consumer perception, their parks are distinctly in the thrill park\/ride park category, consisting of roller coasters, flyers, swings, and other mechanical amusements.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:post-content -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">It might be easier to understand what they are, by striking out what they&#8217;re not: they&#8217;re <em>not<\/em> megaparks along the lines of Disney and Universal Studios, both of which have taken a decidedly cinematic, media-based turn in recent decades.\u00a0 Contrast them also to the aquatic adventures of SeaWorld, or the toy brick-infused playgrounds at Legoland.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">The Six Flags and Cedar Fair archetype is &#8220;Purveyor of G-forces,&#8221; rather than of immersive lands with brands and characters that evoke deep emotional attachment (e.g. Marvel, Star Wars, Harry Potter, Ninjago).\u00a0 Can you name a Six Flags or Cedar Fair &#8220;character&#8221;?<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">What they offer is a thrill\/ride park experience, and it&#8217;s a tried-and-tested formula, one that harkens back to the earliest days of the amusement park industry.\u00a0 One view of Cedar Fair and Six Flags is as the torchbearers of this century-old legacy.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Their core experience isn&#8217;t much different from the offering of the earliest American amusement parks at the turn of the 20th century, when ferris wheels, coasters, carousels, and flume rides were first invented. The mainstays of the theme park culinary experience, such as ice cream and hot dogs, debuted during the early 1900s. Shows and exhibits were a core part of the trolley parks, boardwalks, and amusement park experience back then too. And before waterparks and water slides, there were salt water pools, bathing ponds, and ocean swings.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7599,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Old.png\"><img decoding=\"async\" width=\"1024\" height=\"660\" class=\"wp-image-7599\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Old-1024x660.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Old-1024x660.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Old-300x193.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Old-768x495.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Old-1536x990.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Old-2048x1320.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:heading {\"level\":1,\"align\":\"center\"} -->\r\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_History_of_Ride_Parks\"><\/span><strong>The History of Ride Parks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Sure, the coasters have gotten faster, the towers have gotten taller, and parks have gotten bigger, but the core experience is much the same. Expectedly so: Cedar Point, from which Cedar Fair takes its name, is the oldest extant park in the United States.\u00a0 The chain also includes Dorney Park, a trolley park built in 1884.\u00a0 Similarly, Six Flags New England started life as a picnic grove at the turn of the 19th century, before being converted into an amusement park in 1912.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">These are among the few amusement parks of that golden era that exist today. Electrification, increasing leisure time, and a spirit of innovation powered an explosion of amusement parks in all sorts of creative manifestations. In those early days of amusement parks, there were no rules, and the &#8220;amusements&#8221; rolled out in these projects took forms unimaginable today &#8211; some rides&#8217; sole purpose was to fling people off of them, without seat belts or harnesses.\u00a0 Casinos, dance pavilions, and beer halls were juxtaposed next to rides.\u00a0 Shows made frequent use of animal cruelty, while human zoos of &#8220;exotic&#8221; people featured prominently.\u00a0 In parks like Steeplechase Park, staff used cattle prods to <em>literally<\/em> shock visitors.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">In 1905, a &#8220;mania&#8221; ensued as over 1,500 amusement parks dotted the fairgrounds, picnic groves, beachside resorts, and hills of America.\u00a0 But after a worldwide depression and world war, many of these parks had outlived their appeal. Economic conditions, shifting population centers, and changing consumer tastes brought on a mass extinction of these amusement parks.\u00a0 Many simply burned down.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7606,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Openings.png\"><img decoding=\"async\" width=\"1024\" height=\"766\" class=\"wp-image-7606\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Openings-1024x766.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Openings-1024x766.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Openings-300x224.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Openings-768x574.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Openings-1536x1149.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Openings-2048x1531.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7605,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Closings.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"758\" class=\"wp-image-7605\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Closings-1024x758.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Closings-1024x758.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Closings-300x222.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Closings-768x569.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Closings-1536x1138.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Trolley-Closings-2048x1517.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">This cleared the slate for a second American amusement park boom during the post-war 1950s to 1970s.\u00a0 Led by Disney, these projects now had a new name: &#8220;theme parks&#8221;.\u00a0 Taking advantage of a growing population and low-priced land, today&#8217;s major theme park chains were launched during this time.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Disneyland opened in 1955; Universal Studios Hollywood started as a tour in 1964, the same year as SeaWorld.\u00a0 The entity that became Six Flags opened the first of its parks in the 1960s; Cedar Fair was created in a merger between Cedar Point and\u00a0 newly-built Valleyfair in 1978.\u00a0 The first waterparks were also opened during this era.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":1,\"align\":\"center\"} -->\r\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stagnation_or_Stability\"><\/span><strong>Stagnation or Stability?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Ride parks are built on the DNA of an attraction type that&#8217;s more than 100 years old.\u00a0 And as analysts of this industry, it would be irresponsible not to consider the possibility that perhaps for the ride\/thrill park product, this second boom may also be in its waning phase.\u00a0\u00a0<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Certainly the financials might attest to this.\u00a0 Attendance to both chains has been lagging, and for the past ten years, the market has assigned a stagnant value to their operations.\u00a0 The enterprise value of Six Flags was nearly $6 billion in 2014-2015; at the end of 2023 it was $5 billion.\u00a0 Cedar Fair&#8217;s was little over $4 billion in 2014-2015; it was a little over $4 billion in 2024.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7598,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/EV.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"772\" class=\"wp-image-7598\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/EV-1024x772.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/EV-1024x772.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/EV-300x226.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/EV-768x579.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/EV-1536x1158.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/EV-2048x1544.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Both chains are almost certainly trading for below their replacement values.\u00a0 Current valuations imply a value per theme park of between $300m to $400m, <em>including<\/em> land costs &#8211; which is likely unachievable in current conditions.\u00a0 \u00a0In 2022, Six Flags estimated a replacement cost of $500m to $700m for its parks.\u00a0 Depending on land costs, this may vary widely, but based on our knowledge of the industry the general magnitude is correct &#8211; it would be difficult to replace any major theme park for less than $400 million.\u00a0 (This can of course be verified using our <a href=\"https:\/\/www.theparkdb.com\/blog\/attraction-investment-cost-tracker-2017-present\/\">investment cost tracker<\/a>).\u00a0\u00a0<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7915,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-26-at-8.59.52-AM.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"168\" class=\"wp-image-7915\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-26-at-8.59.52-AM-1024x168.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-26-at-8.59.52-AM-1024x168.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-26-at-8.59.52-AM-300x49.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-26-at-8.59.52-AM-768x126.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-26-at-8.59.52-AM.png 1402w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>&nbsp;<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":1,\"align\":\"center\"} -->\r\n<h1 class=\"wp-block-heading\"><span style=\"font-size: 56px; font-family: 'EB Garamond';\"><strong><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-21-at-9.12.39-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7626\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-21-at-9.12.39-PM-904x1024.png\" alt=\"\" width=\"747\" height=\"846\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-21-at-9.12.39-PM-904x1024.png 904w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-21-at-9.12.39-PM-265x300.png 265w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-21-at-9.12.39-PM-768x870.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-21-at-9.12.39-PM-1356x1536.png 1356w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-03-21-at-9.12.39-PM.png 1460w\" sizes=\"(max-width: 747px) 100vw, 747px\" \/><\/a><\/strong><\/span><\/h1>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-family: 'EB Garamond'; font-size: 20px;\">So what does it mean if the cost of replicating the Six Flags or Cedar Fair portfolios is higher than their values?\u00a0 It would seem to deter any future development of theme parks in the markets they operate in.\u00a0 It would seem to suggest that these parks, at least in their current form, are in an oversupplied or\u00a0 overcapacity situation.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-family: 'EB Garamond'; font-size: 20px;\">Perhaps an analogy would be to something like a coal-fired power plant.\u00a0 No one will be building any more, but as a cash-flow generating asset, their owners have an interest in maintaining it until the end of its useful life.\u00a0\u00a0<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":1,\"align\":\"center\"} -->\r\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deals_as_a_Strategy\"><\/span><strong>Deals as a Strategy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">This is likely no surprise to management at either chain.\u00a0 For decades, their growth strategies have been that of expansion and acquisition, rather than on the repositioning or re-imagining of the core ride park experience. <strong>The propensity for deal-making at either chain has been so high that it&#8217;s inextricable from any analysis of their operations.\u00a0<\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">One could interpret the inclination to do deals as the cause of their distinctive positioning: with so many operations across different geographies, markets, and previous owners, what else could have resulted but a portfolio of ride parks &#8211; the most basic, tried-and-tested assemblage of classic rides, with a minimum of operational complexity?<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">One could also feasibly argue that perhaps it was the nature of thrill parks, for reasons including but not limited to seasonality (closed months out of the year), high capex requirements (brand new novel coasters or rides, each $10-30m), and changing consumer tastes, that the only way for them to survive, in the aggregate, was to expand and acquire others over time.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cedar_Fair\"><\/span><em><span style=\"font-size: 40px; font-family: 'EB Garamond';\"><strong>Cedar Fair<\/strong><\/span><\/em><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Whatever it was, the history of both chains has been highly transactional.\u00a0 Over the course of a decade from 1995 to 2006, Cedar Fair tripled the size of its portfolio by adding Dorney Park, Worlds of Fun and accompanying waterpark, and Knott\u2019s Berry Farm in Orange County, which had predated even Disneyland. It further added Michigan\u2019s Adventure and its adjacent waterpark, while simultaneously opening other waterparks. Then in 2006, it purchased the five-park portfolio of Paramount Parks (then owned by Viacom).<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7597,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/CedarFair.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"760\" class=\"wp-image-7597\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/CedarFair-1024x760.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/CedarFair-1024x760.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/CedarFair-300x223.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/CedarFair-768x570.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/CedarFair-1536x1140.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/CedarFair-2048x1520.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:heading -->\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Six_Flags\"><\/span><span style=\"font-size: 40px; font-family: 'EB Garamond';\"><em><strong>Six Flags<\/strong><\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">The current state of Six Flags was a result of even more deal-making. The original Six Flags opened in Arlington, Texas, in 1961, and was subsequently purchased by Penn Central, which was looking to diversify beyond its railroad revenues. After opening parks in Georgia and St. Louis, the chain purchased three more during the 1960s before being flipped among various owners for the next twenty years.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Six Flags then took its final form by combining itself with another entity.\u00a0 In the center of the United States, a company named Tierco had originally bought the Oklahoma City-based Frontier City theme park in order to redevelop the land. When the plans fell through, it continued to operate Frontier City. It found the venture so profitable it went on to add the White Water waterpark (Hurricane Harbor Oklahoma City) and Wild World theme park (Six Flags America) to its portfolio.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">The company renamed itself Premier Parks, and continued its acquisitions spree. By 1997, Premier Parks had nearly 10 operations, and doubled its size the following year by acquiring the Six Flags portfolio, then owned by Boston Ventures and Time Warner. In 2000, all parks under its management began operating under the Six Flags name. It continued to add and open new parks for the next 20 years.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7601,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags1.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"757\" class=\"wp-image-7601\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags1-1024x757.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags1-1024x757.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags1-300x222.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags1-768x568.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags1-1536x1136.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags1-2048x1514.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7602,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags2.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"757\" class=\"wp-image-7602\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags2-1024x757.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags2-1024x757.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags2-300x222.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags2-768x568.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags2-1536x1136.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags2-2048x1514.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Such expansion led to a lack of continuity and coherent long-term strategy &#8211; or was M&amp;A their strategy all along?<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Collectively, the parks went through multiple changes of owners, from private funds, governments, amusement operators, or the original founding entrepreneurs, with the strategy changing every time. The original Six Flags portfolio had gone through five different corporate owners by the time Premier Parks acquired them: Penn Central (a railroad), to Bally Manufacturing (who had stocked the parks with its arcade machines), to Wesray (a buyout fund), to Time Warner (media conglomerate), before it too sold a majority stake to Boston Ventures, a private fund.\u00a0 Expanding too fast spelled trouble for Six Flags by the end of the 1990s.\u00a0 Facing a shareholder revolt and high debt loads, the chain went bankrupt in 2009.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7621,\"linkDestination\":\"custom\"} --><\/span><\/p>\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"778\" class=\"wp-image-7621\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags-1024x778.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags-1024x778.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags-300x228.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags-768x583.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags-1536x1166.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/SixFlags-2048x1555.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7620,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Premier.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"772\" class=\"wp-image-7620\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Premier-1024x772.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Premier-1024x772.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Premier-300x226.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Premier-768x579.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Premier-1536x1158.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Premier-2048x1544.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Such flipping of ownership (and motivations) was mirrored at Cedar Fair.\u00a0 The chain&#8217;s Viacom portfolio had been variously owned by Taft Broadcasting (who had themed the parks with Hanna-Barbera content &#8211; e.g., the Flintstones), Kings Entertainment Corporation (who took control via management buyout), American Financial Group, and then finally Paramount Pictures, who attempted to return the park to its themed roots by adding Top Gun, Scooby Doo, Tomb Raider, and the Italian Job-themed rides. It maintained control over the park for only a year before Viacom acquired control of Paramount Pictures, although the parks continued to be branded under the Paramount name.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7600,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Paramount.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"758\" class=\"wp-image-7600\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Paramount-1024x758.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Paramount-1024x758.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Paramount-300x222.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Paramount-768x569.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Paramount-1536x1138.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Paramount-2048x1517.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Then there were the parks that had originally been developed by Marriott (yes, the hotel chain), which in the 1970s joined the growing theme park trend by developing the theme parks that eventually became California\u2019s Great America (Cedar Fair, via Paramount) and Six Flags Great America. Amidst this, there was even an iconic park &#8211; Geauga Lake &#8211; that traded hands between Cedar Fair and Six Flags. <\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">We are aware that these diagrams do not show the totality of the picture.\u00a0 Six Flags, for example, outright abandoned some parks (e.g. New Orleans) and at one point had European operations that it sold off during its debt-related troubles.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":1,\"align\":\"center\"} -->\r\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Further_Contrasts\"><\/span><strong>Further Contrasts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">While such M&amp;A resulted in incremental income, it didn\u2019t necessarily translate into outperformance of their existing operations over the long-term.\u00a0 A quick look at the Southern California market illustrates this.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">In 1971, Six Flags Magic Mountain opened to an annual attendance of 900,000.\u00a0 Not too far away, Universal Studios Hollywood recorded a similar visitation level &#8211; it had been only seven years since it had opened.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">But the largest attractions in the Southland during that year were in Orange County, where Disneyland recorded visitation of nearly 8 million, while Knott&#8217;s Berry Farm (Cedar Fair) entertained over 3 million guests.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">The diverging fate of these parks over the next 50 years is indicative.\u00a0 Disneyland doubled its attendance, to nearly 17 million, but Knott&#8217;s Berry Farm grew its visitation by barely 25%.\u00a0 Universal Studios Hollywood&#8217;s attendance grew by nearly 8x; Magic Mountain grew, too, but by 3x.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7603,\"linkDestination\":\"custom\"} --><\/span><\/p>\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal1.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"672\" class=\"wp-image-7603\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal1-1024x672.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal1-1024x672.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal1-300x197.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal1-768x504.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal1-1536x1008.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal1-2048x1344.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7604,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal2.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"672\" class=\"wp-image-7604\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal2-1024x672.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal2-1024x672.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal2-300x197.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal2-768x504.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal2-1536x1008.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Socal2-2048x1344.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">What are we to make of this?\u00a0 On one hand, you could make the case that with such a short average ownership tenure, the parks owned by Cedar Fair and Six Flags parks have never had the chance to decently compound their performance over the long-term.\u00a0 Or as an extension of this point, perhaps it&#8217;s been an issue of too many parks, too soon.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">After all, Universal Studios&#8217; corporate history has similarly been marked by a frequent ownership change &#8211; from MCA and Matsushita, to Seagram, Vivendi, and Comcast.\u00a0\u00a0But Universal Studios only opened a second park 25 years after its first, and has undertaken subsequent projects at average intervals of 10 years between parks.\u00a0 The chain has a similar age to that of Six Flags &#8211; but the latter has nearly 30 operations to Universal&#8217;s 6.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":1,\"align\":\"center\"} -->\r\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Media_Strategy\"><\/span><strong>The Media Strategy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\r\n<!-- \/wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Dig deeper, though, and there may also be something fundamental in the difference between a ride park and the theme parks represented by Disney and Universal.\u00a0 From a similar starting point, Universal Studios has leapfrogged the ride park chains in visitation and revenues.\u00a0 On the other hand, it\u00a0almost appears as if there&#8217;s a natural limit to ride park attendance in North America.\u00a0 None of the parks owned by Cedar Fair or Six Flags breaks the 4-5 million visitor mark.\u00a0 Attendance has been steady, almost asymptotic.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7596,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Att.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"766\" class=\"wp-image-7596\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Att-1024x766.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Att-1024x766.png 1024w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Att-300x224.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Att-768x574.png 768w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Att-1536x1149.png 1536w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/Att-2048x1532.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">What&#8217;s the difference?\u00a0 For one, both Universal Pictures and Disney have been owned (mostly) by deep-pocketed media conglomerates for whom theme parks have been just another marketing outlet for their media properties &#8211; i.e., content.\u00a0 From the beginning, Walt Disney envisioned Disneyland as an outlet for cross-promotion of its television programs, movies, and merchandise.\u00a0 The &#8220;content&#8221; &#8211; the stories and characters &#8211; has provided guests with a sense of emotional resonance and attachment, one that is evidenced by ever-increasing attendance and high spending.<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"align\":\"center\",\"id\":7928,\"linkDestination\":\"custom\"} -->\r\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/1957.png\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"888\" class=\"wp-image-7928\" src=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/1957.png\" alt=\"\" srcset=\"https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/1957.png 960w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/1957-300x278.png 300w, https:\/\/www.theparkdb.com\/blog\/wp-content\/uploads\/2024\/03\/1957-768x710.png 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/a><\/figure>\r\n<!-- \/wp:image -->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Since theme parks are a complementary, synergistic business to these media conglomerates, by definition it means that theme parks are not their <em>only<\/em> business.\u00a0 The reasons to own theme parks, for Disney and Universal Studios, are not solely financial.\u00a0 Lean, unprofitable years have been tolerated without jettisoning the parks responsible for them.\u00a0 I.e., Disneyland Paris has <a href=\"https:\/\/www.forbes.com\/sites\/carolinereid\/2023\/03\/28\/disneyland-paris-reports-record-26-billion-revenue\/?sh=f579cbd31875\">rarely turned a profit<\/a> for the last 30 years.\u00a0 Hong Kong Disneyland has fared the same since its opening twenty years ago.\u00a0 And when Disneyland Shanghai merely broke-even in its first year of operations, <a href=\"https:\/\/www.ocregister.com\/2017\/06\/16\/disneys-iger-says-shanghai-resort-close-to-breaking-even-2\/\">it was heralded as an achievement for the ages<\/a>.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Both Six Flags and Cedar Fair, for a time, flirted with the possibility of pursuing this kind of strategy.\u00a0 Six Flags was majority-owned by Time Warner for a time.\u00a0 A substantial portion of the Cedar Fair portfolio was held by Paramount Pictures and Viacom, and before them, by Taft Broadcasting.\u00a0 Could a Hanna-Barbera- or Warner Bros.-themed park have held their own against Disney or Universal Studios?\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">Perhaps, but we&#8217;ll never know.\u00a0 After brief periods of ownership, the parks in question were flipped to new owners, in service of the ride-park-roll-up strategy that became the hallmark of both chains, and that the upcoming merger seems to be further continuing.<\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\"><!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph --><\/span><\/p>\r\n<p><span style=\"font-size: 20px; font-family: 'EB Garamond';\">In this discussion of what Cedar Fair and Six Flags are, we&#8217;ve drifted to a discussion of what they&#8217;re not.\u00a0 Returning to what they are: both chains are America&#8217;s premier ride park chains.\u00a0 They hold parks that maintain the legacy of America&#8217;s amusement park glory days, with some parks over 150 years old.\u00a0\u00a0They are solid cash-flowing businesses, and for what it&#8217;s worth in their own way, they&#8217;ve managed to draw an economic moat around themselves &#8211; it&#8217;s impossible to replace them at their current values.<\/span><\/p>\r\n<!-- \/wp:paragraph -->","protected":false},"excerpt":{"rendered":"<p>Introduction On the news of the potential merger between Six Flags and Cedar Fair, we thought it might be worthwhile to look back at their history and consider their place in the attractions landscape. With their thrill park offerings, both chains occupy a distinct niche within the theme park industry. Both chains are also characterized [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7597,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[47,52],"class_list":["post-7564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-theme-parks","tag-cedar-fair","tag-six-flags"],"acf":{"":"","bfi_title":"","bfi_title_2":"","bfi_description":"","chart_image":"","chart_title":"","chart_description":"","bc_title":"","bc_sub_title":"","bc_content":"","bc_right_side_content":"","highlighted_image":"","highlighted_sub_title":"","highlighted_title":"","highlighted_bottom_text":"","highlighted_button_text":"","highlighted_button_link":"","below_highlighted_title":"","below_highlighted_sub_title":"","below_highlighted_content":"","below_highlighted_right_side_title":"","below_highlighted_list":""},"_links":{"self":[{"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/posts\/7564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/comments?post=7564"}],"version-history":[{"count":0,"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/posts\/7564\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/media\/7597"}],"wp:attachment":[{"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/media?parent=7564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/categories?post=7564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.theparkdb.com\/blog\/wp-json\/wp\/v2\/tags?post=7564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}