Interesting bit of news regarding financials and all the fun stock market madness -https://investors.sixflags.com/news-and-events/press-releases/2020/03-31-2020-213020263
Thanks to all this virus silliness many companies are being tested financially, some moreso than others. Six Flags, in particular, seems terrified that they'll be gobbled up by another entity or entities as their share value continues to go down faster than a Thai hooker.
According to this Rights Plan, if any one person, or group of people acting as one, purchase 10% or more of the company's stock (percentage of ownership for the layman) then it will trigger an immediate 50% discount on the remaining shares to be purchased by existing stock holders. The idea being that current stockholders will act in good faith to buy more stock in order to dilute the 10% buyer away from controlling amount of shares.
Hypothetical example -
Bill Gates wants to dive into the amusement park industry. Disney and Universal are too strong to compete with directly and too expensive to bother buying out. Cedar Fair and Six Flags, however, are much more approachable to a man of his background. Six Flags ($11.41) is trading at about 65% the value that Cedar Fair ($17.05) currently is, making it the more attractive of the two options. He purchases 15% of the company stock at $11.00 (rounded down from the current price for the sake of argument) which then allows any and all existing shareholders to purchase more shares at $5.50. Because of this, on paper Bill Gates' stock is essentially worth 7.5% (theoretically) if this triggers a surge in buyers. Because of this, Bill Gates will have second thoughts about buying Six Flags and might instead look at Cedar Fair because he'll get more bang for his buck.
This is an extremely simplified example of what could happen, but this is essentially Six Flags throwing out a lifeline to themselves. It will be very
interesting to see what happens a few months down the line. With the current economic climate I wouldn't expect any kind of buyout or hostile takeover but I am fully expecting Six Flags to unload a bunch of their underperforming parks and standalone water parks.