Knott's Berry Farm and Magic Mountain owners talk merger
Cedar Fair and Six Flags could unveil plans for deal this week, according to 2 published reports
The parent companies of Knott's Berry Farm and Six Flags Magic Mountain are exploring a potential merger that would combine two of the largest regional theme park chains in North America, according to published reports.
The Wall Street Journal and Reuters are reporting that Cedar Fair and Six Flags could unveil a merger deal as early as this week.
Cedar Fair — the owner of Knott's in Buena Park, California's Great America in Santa Clara and other theme parks across the U.S. and Canada — could make an announcement Thursday when the company reports quarterly results, Reuters reported.
“An agreement could be finalized as soon as this week assuming there is no last-minute snag,” according to the Wall Street Journal.
Cedar Fair owns 15 theme parks and water parks in the U.S. and Canada — including Cedar Point and Kings Island in Ohio, Kings Dominion in Virginia and Carowinds in North Carolina.
Six Flags owns 27 amusement parks and water parks across the U.S., Canada and Mexico — including Magic Mountain in Valencia and Discovery Kingdom in Vallejo.
“A combination would bolster Six Flags' portfolio of parks, especially in the Midwest,” according to the Wall Street Journal. “Cedar Fair would join a nationally recognized brand, though it isn't clear if the chain would rebrand any of its parks under the Six Flags name.”
Cedar Fair rebuffed interest from Six Flags in 2019 and SeaWorld in 2022.
Cedar Fair and Six Flags stock market shares rose on the news, according to Reuters. Cedar Fair ($1.8 billion) and Six Flags ($1.7 billion) have similar market values, Reuters reported.
“A tie-up between the two companies would come as concerns about a U.S. economic slowdown and consumers curbing their discretionary spending have weighed on their stock performance,” according to Reuters. “Merging would allow them to weather a slowdown from a stronger position.”