In a significant move that will create a dominant force in the theme park industry, Six Flags and Cedar Fair have announced their merger in a deal valued at $2 billion. The newly combined company will have a market capitalization of approximately $3.5 billion and will operate under the name Six Flags, trading under the ticker symbol FUN.
According to reports from The Wall Street Journal, Cedar Fair investors will own a majority stake in the merged entity, approximately 51%. However, Six Flags will also have an equal representation on the board of directors of the new company.
Under the terms of the agreement, Six Flags shareholders will receive 0.58 shares of stock in the newly formed group for each share they currently hold. This merger will result in the creation of a regional theme park powerhouse capable of competing with industry giants such as Disney and Universal.
With a combined total of 27 amusement parks and 15 water parks, this strategic merger aims to strengthen both companies’ positions in the market. The news of the merger has already had a significant impact on the stock prices of both Six Flags and Cedar Fair, with shares surging by 5.5% and 5.7%, respectively.
The deal signifies an exciting development in the theme park industry, as these two prominent players join forces to enhance their competitive edge. As the industry continues to evolve, this merger sets the stage for even more thrilling experiences and innovations for theme park enthusiasts around the world.