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Finance: Six Flags considering selling properties

Posted at 7:15 PM EDT (2315 GMT)

Jun. 22nd, 2006 -- Citing decreased attendance and rising costs, Six Flags announced today that the company is "exploring strategic options" for six parks: Six Flags Darien Lake; Six Flags Splashtown in Houston; Six Flags Elitch Gardens in Denver; Wild Waves and Enchanted Village near Seattle; Six Flags Waterworld in Concord, CA; and Six Flags Magic Mountain. These options include selling the parks themselves, dismantling certain rides, and selling the land and expose the properties to redevelopment.

Adding to the financial problem was another announcement today; Six Flags stated that it will not be able to raise its cash operating expenses by $15 million to a target of $60 million. The bad financial news sent company stock plummeting in after-hours trading to around $6 per share, a decrease of nearly 20 percent.

Six Flags did not comment on when any potential action would be taken regarding the six parks, or what that action might be.

See BusinessWire for the press release on the potential sales. More information available at MSN Money and Yahoo Finance.

Edited by: Chris L


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Comments
PCW Maniac

Joined: Jun 2006
Posts: 21

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Now it's official, Cedar Point and Magic Mountain are 2 major amusement parks operated my Cedar Fair.

Hope SFMM and SFDL are sold.

6/22/2006 7:18 PM
bk2004

Joined: Oct 2003
Posts: 7731

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SO SFMM is that much of a pain?

6/22/2006 7:28 PM
BryanWood

Joined: May 2001
Posts: 4008

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No, the land there is extremely valuable.

6/22/2006 7:33 PM
Johnny Upsidedown

Joined: Jun 2001
Posts: 1822

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Its going to be interesting to see what happens over the next few months as things are decided.

On a side not I didnt see a mention of Six Flags New Orleans. So could that possibly mean that the Six Flags chain may keep the New Orleans park. Or that maybe it was not mentioned because of its own unique situation with the insurance and storm damage.
J.

6/22/2006 7:39 PM
BobFunland

Joined: Aug 2005
Posts: 1282

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Darien Lake will be attractive. A good campground, waterpark and a popular concert venue? Its the most apealing one out of the 6, IMO.

6/22/2006 8:17 PM
Chris L

Joined: May 2001
Posts: 7362

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Whoever wrote this article should revise the article summary and title. It's very misleading, inaccurate, and based on an assumption (summary).

The park chain has evaluated those parks for STRATEGIC OPTIONS, only ONE of which is selling off (a) park(s).

6/22/2006 8:55 PM
CHILLERLC1

Joined: May 2001
Posts: 7872

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That's the list of properties I'd consider other than SFMM. Lots of options there. Would they dismantle Superman The Escape? It has its 10 years in. The movie's almost out. It sure eats electricity.

6/22/2006 9:09 PM
Beils

Joined: Nov 2005
Posts: 60

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YAY! Sell SFDL! Sell SFDL!

I don't mind if Cedar Fair takes over. But they probably won't buy any of them because they just got all of Paramount. We need an owner that's going to put in a ride that's worthwhile. So long as the park stays open, only good can come of this, IMHO.

6/22/2006 9:24 PM
coasterfreak14

Joined: May 2005
Posts: 519

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I'm suprised that SFMM is one of 'em. Especially since they just built a new coaster.

6/22/2006 9:38 PM
Chris L

Joined: May 2001
Posts: 7362

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^ Keep in mind Tatsu was green-lighted and funded under the old management.

6/22/2006 9:44 PM
Jerry S

Joined: Aug 2003
Posts: 5066

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When they say they're gonna sell SFMM, do thye mean they'll keep it as a park, or sell the land? Because that park has too many terrain rides to relocate them. And the other parks also don't have rides that can be relocated too well. I can't miagine S:ROS, the first relocated hyper.

6/22/2006 10:06 PM
Bratman

Joined: Sep 2002
Posts: 464

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^^ haha they can relocate S:ROS from SFDL to PCW anytime ;-)

Seriously, though..... I know SFDL has a LOT of unused land (hundreds of acres). I can see them selling it off to a company interested in operating a resort there.


6/22/2006 10:50 PM
Jimmy B

Joined: May 2001
Posts: 2130

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The only logical option I see, of those strategic options mentioned, for Magic Mountain is dismantling of a few of their rides. I really can't see (any part of) the park being sold off.

6/22/2006 11:37 PM
CHILLERLC1

Joined: May 2001
Posts: 7872

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In the closed thread Chris mentioned moving Scream! That's a good idea given Tatsu, B:TR, Riddler, and VIPER are already serving up the inversions. It's Six Flags' fault that they didn't rip up the asphalt that Scream! is built on. It would be cool to relocate it to SFSTL or SFGAM. It would also be easy then to fill the former footers with asphalt and reopen the parking spaces. : )

6/23/2006 12:01 AM
BGWfanatic

Joined: Aug 2005
Posts: 1864

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^ That does sound like a pretty good idea. Ok, there not going to sell Magic Mountain. Its one of there flagship parks. BUT, do they have any extra land anywhere they may sell off???

6/23/2006 12:06 AM
Nitro Luvr

Joined: Aug 2004
Posts: 408

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Well I can see Six Flags selling all of the parks except Magic Mountain. SFMM has a LOT of SBNO rides in the park in which they need to do something with them. Thats the only change I see with that park. The other parks I can see being sold. I know I predicted Elitch Gardens to be another Astroworld if they kept running it the same way. And now it looks like it just may become a reality. Im certainly not surprised though. But to sell SFMM would be criminal in itself and will set the tone for Six Flags demise. Thats like getting rid of SF Great Adventure. It simply wont happen. But I do forsee "landscaping" changes to it.

6/23/2006 12:52 AM
WildeFyre

Joined: Apr 2004
Posts: 3027

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I agree with BobFunland about SFDL being one of the most appealing parks that could be for sale.

I just really hope that SF management doesnt sell off all the land to developers so any new owners wont have much land to expand on.

6/23/2006 1:56 AM
Wes

Joined: Sep 2001
Posts: 11063

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I can't see them selling SFMM, basically their flagship park in many ways.

6/23/2006 7:21 AM
CHILLERLC1

Joined: May 2001
Posts: 7872

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It's the West Coast anchor. Yeah. They seem to form a triangle of powerhouses - SFMM to SFGADV to SFOT/SFFT - and it should stay that way as a core.

6/23/2006 10:19 AM
Skyboss

Joined: May 2001
Posts: 66

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People seem to be against CF picking up SFMM, one has to wonder though what Cedar Fair Management and Peanuts entering the picture would do for the park. Go seasonal like CP. Dump the crap coasters that do nothing but inflict pain or have horrible reliability problems, clean up the park, build a hotel, and build some dorms to house college students. Change the name if you have too. Cedar Fair's reputation alone will change the model, give the park some time off at the end of Summer and spend 7-8 months working on it.

6/23/2006 2:44 PM

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