RUMOR: Cedar Fair offically eyeing PKI

Cedar Fair's Big Bang as well?

Last paragraph:

After the meeting, Mr. Kinzel revealed Cedar Fair is considering buying Kings Island, an amusement park near Cincinnati that was put up for sale by its owner, CBS Corp. That park is one of five in CBS' Paramount Parks division.

That would be pretty strange. Cedar Fair would have a monopoly in Ohio if that happened. Of course, with Cedar Fair's track record for wood coaster maintenance, the woodies at PKI would go to crap in no time...oh wait, they're already there!

I would like to see what they would rename everything and if they would de theme Tomb Raider

I can see it now:

Italian Job: Stunt Track will now be known as Car Chase...

If name changes do happen I will loose one of my favorite names for a coaster ... Face/Off

I would hardly call this a rumor. It came straight from the top. I wonder if they have any interest in any other parks in the chain.

DAMN! you beat me to this post, HOMER! LoL

I guess living in Hawaii with the time difference here makes the news here later..lol

I was going to post that message and found the same message regarding the CP possible aquisition.

What I am curious to see is...What are people's opinions (here on this site)? I actually think this could be BAD news in that the close proximity of BOTH parks (owned by CF, Ltd) can only put a dent within each parks marketing budget.

Also, reading that report, the economy around that area of the country is not doing so well and the fact of reducing (CP) priced on food, admissions, etc. to gain more park volume will only add to the troubles in having BOTH (PKI & CP) within the same corporate portfolio. I'm just not sure this makes good economic sense at this time (even with the economy down in that part of region and the selling price may be right for CF). Also, CP has been reporting losses around the $25 million range for the quarter(s).

What are other peoples opinions here?

I will have to look under the other posts regarding the Paramount Parks sale, but i DID state somewhere that CP was interested in buying the park(s) chain and I spoke with (ITPS) and a friend at the company was a little curious why the chain would add the park as well, being in such close proximity. hmm... Good move or not?

You do know they bought Geauga Lake and it's really close to CP don't you

I am suprised about this. I thought that Cf would most likley buy PKD or PCar. Cf is creating a monoply in Ohio.

About renaming the rides what will Face/off and Tomb Raider be called?

Hopefully something better than Dominator or Head Spin

^^ Yes. I do know that GL is owned by CF. But, look at the current (possibly long-term) conflicts with each park. If GL had a competing vendor, I would venture a guess that it could possibly have 2 more coasters by now (perhaps even a hyper). I have not (smack me) followed GL to any great deal nor have I personally visited that park. I am merely suggesting that having three (assuming CF purchased PKI) parks in such close proximity could possibly affect the corporate strategy in maintaining/increasing attendance figures annually and possibly how it affects the corporate strategy in stock performance.

Let's face it, PKI has some issues with their current coaster operations and to possibly repair, replace and invest in these attractions may be a huge expense in the near-term and long-term.

I'm sure CF is closely looking at the situation and apparently have done their own homework, I just see the situation rather bleek at the current condition of:

1. Local economy is rather weak.

2. CF. stock and profits have declined recently (this trend may continue through next year).

3. The investment to be made in PKI's upgrades (rides, infrastructure, re-branding, etc).

I think marketing the parks would be easy, one commercial with all three parks shown

Just a recipe for disaster is sounds to me...lol

I've worked in the industry 14+yrs and very rarely do they work out. I'm hoping to be an optimist and perhaps CF can make it work, but I'm skeptical on this move. Case in point. Look at the similar issues with Paramount/Viacom/Universal/Time Warner/NBC/CBS. I've had to study some of these issues for my Masters degree and something just doesn't add up. Perhaps the short run, yes CF could make it work, but if they (CF) does purchase PKI, I would say they unload it and sell it within 3-5 yrs (if not sooner).

Cedar Fair I think would promote the heck out of it. Living near PKI (5 minutes tops) I can tell you that PKI has a lot of thing cedar point does not. For instance, it has 4 wooden coasters, with the Beast. It also has a great waterpark (even though castaway bay is newer, I think Boomerang Bay draws more during the summer). Also you may not understand how Ohio is, but the population density here is astonishing. Almost none of my friends here have ever been to cedar point. People don't travel far to go to parks, and 4 hours is far to travel just for a themepark in many people's eyes. Also, PKI has without a doubt the best children's area of any park. It's great with tons of rides for the kids, and it just received the new themeing and paint. It looks great. I believe attendence would boost if you could visit all 3 parks (CP, GL, and PKI) on one pass. They would charge more for the season pass, but look at all you'd get out of it. Anyway, PKI is in DESPERATE need of either an intamin ride or a B&M, and Cedar Fair is the company to put one in. I'd be so pleased if this sale goes through, but I'm doubtful. The park isn't really in competition with cedar point is what I'm mainly trying to say. Completely different crowds.

-James "frequented both parks for years and years" Dillaman

I don't see Cedar fair selling off the park

I'm certainly the odd man out here on this posting..lol

Perhaps I am looking at it from a business point-of-view and the operational costs and issues to re-brand PKI to a CF park (and the issues they are possibly facing in fixing some of the coasters/attractions at PKI). While I am not for or against CF vs. PKI, all I am saying is that CF may have quite a large investment to make in getting the coasters up to CF standards and quite possibly fixing some of the current issues (SOB-for example). Also, I truly believe that having all 3 parks within somewhat close proximity (same state-even) that the future ride selection package(s), park growth, guest services, etc may actually suffer.

Case in point: Look at the 'current' situation at CP. The park is actually Reducing their admissions prices (and some food, etc) because they determined the price-hiking has reached CP peak. Now, will the gamble pay off? Perhaps, but eventually they will need to raise those prices again because of rising costs in: insurance, payroll/raises, healthcare, benefits (management/seasonal employees), fuel costs, electrical...so on and so on. **Does CP upcharge for parking? If not, watch for this to happen perhaps in the near future (as well as PKI). This is the next cash-cow parks are looking at to offset operational costs (and future expansion).

Another reason to point out (example) would be 6 Flags. Look at the parks they purchased in Europe. The region was in a similar situation (economics) and 6Flags kept throwing money into the parks to generate attendance, while operating costs were soaring even higher putting the corporate portfolio deeper into debt. I see a similar problem with CF. I believe they may fall into the trap and it will be hard to bail out of in say...3-5 yrs (assuming they want to sell PKI again). What will CF shareholders, management, board members say then? I just believe this move will honestly put CF into deeper financial challenges (as a whole).

I have a general knowledge of the area to some exent, but would admit that you may have more knowledge by living within the region. I would be concerned on the current economics and how long that will last. After 9-11, Hawaii (of course relying heavily on tourism) was devastated by those events and took about 3-4 yrs to recover and now we are just booming (tourism and business growth) like crazy. But, how long will Ohio and surrounding states be in an economic slump?

Reports have been posted in CF stock reports, and other business news within the area. What IS the unemployment rate there? How are/is the local governments going to handle the current situation? Am I also to believe that the proposed tax increases (PKI) are going to continue or will the gov't back off if CF purchases the park?

I'm just playing Devils advocate here, but mostly to generate discussions..lol I like looking at both sides of the topic and curious on others opinions here. I just hope both parks continue to grow (which we ALL want).

um, tourism is NOT a big thing in Ohio. We all live here... Like I said, Cleveland market is covered by Geauga Lake, Cincinnati's covered by PKI, Cedar Point brings in the travelers from out of state, and the only market shared is Columbus. It works out that there is certainly enough people in these regions to buy passes and go to the park to make sufficient profit for both. Also our economy isn't doing too bad right now, with the exception of the steel and airline industry, toyota's expanding a plant near cincinnati, and other firms are moving into ohio for the tax breaks the state government's offering. I don't see any problem at all. On a related note, geauga has a strict height limit, and thus no hyper. Cedar Fair has also repeatedly asked for approval on a 200+ foot coaster for Michigan's Adventure, but the county hasn't gone with it. They first pleaded their case the year they purchased the park...

-James Dillaman

The retheme wouldn't be tough ... tha majority or the Paramount things in the park are just signs . Also, don't feel singled out Kumba, we see your side of it and we are just saying ours

I think PKI was mentioned by Kinzel to detract from the real deal going on:

I mean, whoever said that Paramount was selling their parks individually?

IMO Cedar Fair is gonna buy ALL FIVE parks.

No longer a Rumor Looks like a done deal Cedar fair buying all the Paramount parks, Heres part ot the story.

PRESS RELEASE: CEDAR FAIR, L.P. TO ACQUIRE PARAMOUNT PARKS

 

 

SANDUSKY, OHIO, May 22, 2006 -- Cedar Fair, L.P. (NYSE: FUN), a publicly traded partnership which owns and operates seven amusement parks and five water parks, today announced that it has signed a definitive agreement for the acquisition of the Paramount Parks. Cedar Fair, L.P. will acquire the stock of Paramount Parks, Inc., a wholly owned subsidiary of CBS Corporation (NYSE: CBS) (NYSE: CBSA) for a cash purchase price of $1.24 billion.

 

Heres the rest if your interested.

http://www.cedarfair.com/ir/press_releases/index.cfm?current_root=15&mode=story&story_id=69

 

Not a done deal yet but alot closer.

Well this will make things interesting for Bonfante as they are only managed by Paramount.

Dws.