The company that owns Knott’s Berry Farm, King’s Island, and many other theme parks around North America has received an offer from SeaWorld Entertainment. Cedar Fair LP has received an offer of 3.4 billion dollars should they be willing to be bought out by the company made famous by orcas and dolphins. As a result, both SeaWorld Entertianment and Cedar Fair LP shares rose over the early days of this week.
From The Motley Fool:
In 2020, when the coronavirus pandemic first started to spread across the globe, amusement parks were shunned by investors and consumers alike. However, as the world has started to learn to live with the illness, it appears that SeaWorld Entertainment (NYSE:SEAS) thinks the future will be bright for these in-person, group-oriented entertainment options. That analysis comes from the rumor that the company has offered $60 per unit for peer Cedar Fair. Cedar Fair owns 13 largely seasonal, ride-focused amusement parks and would complement SeaWorld’s similarly sized collection of parks. Cedar Fair has stated that it is reviewing the acquisition offer, but did not disclose the offer’s details.
A similar attempt was made by Six Flags in 2019 with a more than $4 billion offer. However, that was rejected by Cedar Fair LP. That was a different time though. And both SeaWorld and Cedar Fair LP just so happen to need exactly what the other company offers. Does that mean this is going to be accepted and a deal struck? That’s far more difficult to say just yet. The upsides are mostly positive for both company, however, it could lead to major shakeups for corporate management types… and that makes the efforts more challenging. Which executives win and which lose in a merger?
Should the deal go through, we’ll cover it here at That Park Place. Let us know in the comments below if you have any opinion on this potential change!
