[Capler]

I feel the rumor could be true. There is a deafening silence from both companies. If there is no truth to the rumor, Fair would issue a statement disavowing it, if it wishes to remain independent. If not a Six Flags merger, such a rumor would immediately put the company in play to other suitors such as private equity.

The rumor could be leaked in an attempt to extract a better offer from Six Flags or anyone else. The shareholders could feel there is little growth potential in the stock/company, and are willing to sell now while they can get a premium.

[Edwardo]

In 2006 CF bought Paramount Parks for $1.24 billion (that’s over $1.5 billion in 2019 dollars)c and that was only 5 parks and 2 management contracts.

Those 5 parks are worth way more now and then add in 11 additional parks/water parks, and 13 hotel/camp grounds, with those parks having had MILLIONS invested in them over the last several years, the company would be worth several billion dollars. How many billions are those 15 parks, a management contract, sports force, and hotels worth? I’d say way more than SFI has to pay.

CF has a market cap of just under $3.5 billion. That's what CF is worth, and is the basis for what Six Flags would be paying; what CF has spent over the past years is irrelevant. And not cash, they can make the payment by issuing new SIX stock (the first reports indicated a cash + stock offer).

The only question is if CF board of directors accepts an offer or not, and how much more SIX may need to offer to get them to bite (some speculation puts a "fair" takeover value at $90/share) - at which point it may no longer be an attractive acquisition for them.

Your constant attempts to argue are really getting pathetic. Investments in the parks aren't irrelevant. Market Cap is going to be one of the things that would be looked at...if this entire thing was actually happening. Which is unlikely in so many ways.

IF Six Flags makes an offer, CF is going to consider that plus their total assets.

Instead of trying to prove yourself right, perhaps you should just participate in conversations. You're going to come back and tell me I'm focusing on ONE SPECIFIC WORD OR PHRASE, which is incorrect, but your go to argument. Regardless, the point I made still stands as a basis for why this is an unlikely buy out. Your opinion of that doesn't make the comment any less so.

[BrianH1970]

https://finance.yahoo.com/amphtml/news/ ... 41560.html


It makes for an interesting "what if" discussion but that's probably as far as it'll go.

[Edwardo]

If the companies merged and they took on the CF management and had Ouimet, who is still in the CF board, help stead the merger, there are Definitely things that could end up being a net positive for us.

I don’t doubt that there is some nugget of truth to the rumor, but I don’t see it happening. The companies haven’t commented and there was that
cancelled earnings conference call. I’d almost bet that was cancelled due to the trading freeze as they decide how to comment.

But Six buying CFEC would also mean taking on CFEC’s debt, which would come closer to tripling the debt Six already carries.

I would not like to see a Six buyout. I would maybe like to see the end results of a merger with CFEC’s CEO coming in as JRA is retiring, and bringing his people in, if the merger was done right (and maybe it as bungled as the CFEC purchase of Paramount Parks, which was mostly bungled because of Dick).

Edit: yes there was some truth to it, and thankfully CF made the right decision...

https://uk.reuters.com/article/us-cedar ... KKBN1WJ1Z3

Looks like SF thought CF was worth $4billion. Looks like CF thought they’re worth more than that...