NEWS: Snyder Claims Victory in Six Flags Takeover

[Gnome]

What? No more Mr. Six? As I much as he was annoying, he was also very entertaining! You loved to hate him! Am going to miss him if the Snyder guy decides to rip him out of the commercials. Anyways, will a football team be able to run a theme park? I think not, if he sucks, I blame you.... The stock holders! Chances are he'll be worse the the Premier Parks Management.

[robbalvey]

The more I think about, the more I think this is good news.

 

Premiere RAN THE COMPANY INTO THE GROUND. None of the previous owners fucked up the company anywhere close to what Premiere has done. None of the previous owners have CLOSED ANY PARKS. Under Premiere, for the first time in the companies history, we have seen the closing of one of their major theme parks. We have seen the company in the most financial trouble ever.

 

Red Zone claims they can turn this around. And if it takes a slightly higher season pass price or parking price to do this.....

 

How can this be a bad thing?

 

I mean, most of the parks have gotten little to no expansion in the past 5 years anyway, and if Snyder can actually figure out a way to make the parks successful again, how is that BAD?

 

As for speculation of what I think they will or will not do to the parks, I'm going to wait and see. Nothing has been said if are actually raise prices, get rid of Mr. Six, or not install new major rides. At the moment, this is all speculation based on some "proposals." I can't even tell you how many "proposals" I've gone through at work for major entertainment projects which later became toilet paper.

 

I'm not going to set ANY expectations OTHER than I expect him to do better than Premiere.

 

Given that we all have limited amount of information other than a few proposals which may or may not come to fruition, I think we just have to see what happens.

 

It would be a stupid move to run a theme park company EXACTLY like his football team, and from what I know he's not a stupid businessman.

 

--Robb "Not going to expect anything but a better Six Flags." Alvey

[BelizeIt]

I think that this is very good news!

 

Six Flags should benefit from a major shake up in the management team.

 

Lets face it, what Snyder wants is for this company to be a success, and with the stock trading around seven dollars a share, it currently isn't.

 

Bring in the Fresh Blood, Hopefully Six Flags will benefit from it.

[Blazen_AZN]

Really, i don't know what to think. if i didn't live in LA near MM i think i would love the idea, becaucase my home park would probably have been ignored for years, thus any change could not worsen the park. it will either still be ignored, or i would get new rides. it can only get better or stay the same.

 

The problem is i do live near MM, the park that gets all the attention (SFGAdv is catching up though) so we may see less frequent additions from the new management.

 

Really, premier's favoritism is somthing i personally enjoyed, because it gave me new rides... now that may go away.

 

 

But I'm still hopeful.

[DenDen]

When premier came out of practically nowhere buying up parks, then becoming the flags, I had a vision of downgraded quality. And it came true. This can only mean good news for Six Flags.

 

None of the previous owners have CLOSED ANY PARKS. Under Premiere, for the first time in the companies history, we have seen the closing of one of their major theme parks.

 

And, they're the only ones to SELL a park.

[Red]

Although I'm happy with the oustings, I have to wonder, where will these big shot amusement park players go once booted from Six Flags. Lets see, Kinzel leaves in 2007.....woah, scary thought! I doubt most of them will retire though.

 

BTW, which coaster is that in the background?

[Meteornotes]

Short of shutting all the parks down, I doubt Red Zone could do a worse job. I do think the one really bad idea in their initial proposal is the selling off of all the excess land around the parks. This is a really bad idea to not have space to expand.

 

You also have to wonder about the "Clean, Safe, Fun" motto, which will only work if the parks are all those things. Which they are not now. It's going to take a LOT of work to bring them up to that level of quality, and change the public perception of what the usual Six Flags experience is like. Will Snyder have the stamina to see this through, or will he show the same level of patience that he shows with Redskins head coaches? Time will tell...

 

dt

[Homer]

^Red, that coaster is Silver Bullet at Frontier City, a SF-owned park in Oklahoma City.

 

Anyways, right now, I have mixed feelings about this move... I think my biggest turnoffs about this decision would be the selling of expansion land and no rapid construction of big thrills/coasters.

[CoasterFanatic]

I am not totally crazy about the whole "selling off land" thing either, but they have to make some moves that will turn them back into a financially stable corporation and this seems like the most obvious choice.

[Mind Eraser]

The idea of selling off land around the parks is not completely a poor one. Take Six Flags America for example, they own 515 acres, but they're only currently using about 150. Unless they plan on building a hotel and turning it into a resort, SFA doesn't need all 515 acres -- they'll never use them.

 

Also, SFA is not permitted to build rides within 800 feet of Central Avenue (entrance road). This would be the perfect land to sell.

 

So yeah, SFA could sell off, say, 200 acres and still have plenty of room to expand.

[Cameron]

If he sticks with what he's announced so far, and doesn't budge, I can't see the company lasting more than 5 or so years. I hope I'm wrong. Actually, since he totally seems like the "big penis bragger" I don't expect him to just sit back and let the company gurgle down the plug-hole.

 

Still .. I've got to believe that there are far more appropriate people out there who could really turn the company into something great. "Can't be worse than what we already have" just seems like the tiniest improvement possible.

 

So, yeah .. I'm pretty bummed.

 

Cameron.

[Guy T. Koepp]

I renewed my passes yesterday. Just in case.

 

We still don't know if this is official yet. I thought I heard that premire wasn't announcing anything untill after December anyway.

 

I still renewed my passes yesterday. Just in case.

 

Guy "Better safe than sorry. Plus the Tatsu passes were cool too." Koepp

[CoasterCrazy]

I think this is great news for SF's future, I'm glad I have already bought my 2006 season pass.

[Guest]

Six Flags Comments on Red Zone Lawsuit

 

 

NEW YORK, Nov 23, 2005 (BUSINESS WIRE) -- Six Flags, Inc. (NYSE: PKS) confirms that it is aware that Red Zone LLC, Daniel M. Snyder, Mark Shapiro and Dwight Schar have filed a lawsuit in the Court of Chancery of the State of Delaware seeking certain rulings in connection with their consent solicitation. Six Flags stated that the lawsuit was unnecessary and without basis, and that it would respond appropriately in Court.

 

Six Flags, Inc. is the world's largest regional theme park company.

 

Forward Looking Statements:

 

The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, the costs of reviewing and responding to the unsolicited offer and consent solicitation, and other impacts of the proposed offer on Six Flags' operations. Although Six Flags believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including factors impacting attendance, such as local conditions, events, disturbances and terrorist activities, risks of accidents occurring at Six Flags' parks, adverse weather conditions, general economic conditions (including consumer spending patterns), competition, pending, threatened or future legal proceedings and other factors could cause actual results to differ materially from Six Flags' expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Business - Risk Factors" in Six Flags' Annual Report on Form 10-K for the year ended December 31, 2004, which is available free of charge on Six Flags' website at www.sixflags.com

 

SOURCE: Six Flags, Inc.

[Guy T. Koepp]

^So in english... what does all that crap mean?

 

Guy "I ain't no lawyer. An' I don't speak lawyereese." Koepp

[GAcoaster]

Basically, Snyder is suing to take control now, and the current management is saying they want to wait until the end of the month (and the bidding on selling the chain) and have an auditing firm certify the results. Their point is even though currently it may appear that the votes are in Snyder's favor, people can send revocation cards (and change their votes), and probably will if they get a better offer from a buyer, instead of someone trying to take control without buying the company.

 

Snyder is claiming this is a stalling tactic, but a judge has agreed with SF management and is allowing the time to certify the vote.

 

My feeling on all this is Snyder taking control probably won't be the worst thing to happen, but their are so many unknowns.

 

The things we do know (quoted directly from Red Zone's proposal):

 

The marketing campaign featuring the octogenarian mascot would be replaced by a new slogan, "Clean, Safe, Fun," according to a government filing made Friday by Snyder's investment firm, Red Zone.

The new brand campaign would spend less on expensive television ads,

use more direct mail and focus more on families with young children

and teen-agers, the filing said. The Mr. Six campaign is "misguided,"

has an "unclear message" and "weakens the brand," Red Zone said in the

presentation.

 

Not a bad move. Mr Six has run two seasons which is about as long as any ad campaign can run. It's time for a change, and the idea is good as long as the implementation is good. I don't know that direct mail will work (everyone throws junk mail out without even looking at it).

 

Snyder also wants to reprice season passes and charge more for premium parking spots if he succeeds in replacing three of the company's

directors, including Chief Executive Kieran Burke, with new

management.

 

Good move. Season passes are under priced, and draw undesirables since they are SO cheap.

 

Partner with one exclusive food provider, such as a pizza company or

an ice cream company, per category.

 

This is OK, in fact it's what is already happening.

 

Create a Six Flags Rewards program to track attendees spending habits at the park.

 

OK, as long as they're not selling our information to advertisers (but they will, just like the supermarkets that use reward cards). Also, as long as they don't do what they are/were doing at FedEx Field and ONLY accepting their own credit card for payment.

 

Outsource concessions and sell related equipment.

 

DUMB MOVE! As Six Flags pointed out in their rebuttal of these proposals, concessions are VERY PROFITABLE. In addition, the contractor run concessions have BAD service IMO.

 

Have official sponsorships, such as an official energy provider, a Six Flags credit card and bring cellphone, cable and satellite providers

into the parks to sell their products.

 

I have no problem with small signs saying "Jersey Central Power & Light is the Official Energy Provider", or even "The Cingular Showcase Theatre", but I don't need anyone selling me cell phone service or Direct TV as I'm trying to walk trough the park. Think of more people as annoying as the picture takers, but all over the parks

 

Seek to rezone about 3,700 acres of undeveloped property around selected parks and sell it.

 

Good move as long as they put provisions in the sales as to what kinds of things may be built on the property, and they don't sell TOO MUCH land. Encouraging more development around the parks could help the parks, but letting home builders build right up to the fences is a HUGE mistake!

 

Eliminate some of the pricing discounts and emphasize "doing more for children under 48 inches tall."

 

Good idea. Once again, keeping the riff-raff out, and bringing families in.

 

 

Overall-- Snyder's proposals are not terrible (most of them at least). I'm more concerned about the things NOT being mentioned.

• Snyder- His experience is running an NFL team...he doesn't know the THEME PARK business
  
• Shapiro- His experience is running ESPN (though they keep saying DISNEY in all the press releases), he doesn't know the THEME PARK business
  
• Schar- Home Builder, obviously there to oversee selling off real estate, no THEME PARK experience

[cgodsey]

Well, it looks like its official:

 

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh18500_2005-11-29_16-09-48_n29316931_newsml

 

Get those season passes people!