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  • Should Disney Buy Cedar Fair? - Motley Fool article

    http://www.fool.com/investing/genera...edar-fair.aspx


    If there's a suitor to be found for Cedar Fair (NYSE: FUN), it's likely to come in the form of a private equity firm. They're the ones with the deep patience and deeper pockets to finance a $3.5 billion to $4 billion reclamation project.

    No, Cedar Fair isn't even officially on the market, but the company's silence after Monday's New York Post story speaks volumes. If it isn't quietly shopping itself or jumping to squash the published reports, it may just have to deal with gentlemen callers lining up outside of its Lake Erie porch.

    I'll tell you who I would love to see come out on top. You're going to think I'm nuttier than carny-cranked peanut brittle, but I believe that Disney (NYSE: DIS) would be the ideal buyer. I'll give you my reasons, but first let me go over why Cedar Fair's current valuation is likely to scare away many of those suitors who are fumbling for breath mints outside.
    Much more at the link
    Check out my Theme Park Photos at http://darkbeer.smugmug.com

  • #2
    Re: Should Disney Buy Cedar Fair? - Motley Fool article

    Ironically this is NOT what Rick said the other day:

    http://www.fool.com/investing/divide...edar-fair.aspx

    Strictly a private matter
    Yes, if anyone's purchasing Cedar Fair, it'll probably be a private buyer. Six Flags (NYSE: SIX) just shed a few parks of its own. Anheuser-Busch (NYSE: BUD) has shown no signs of expanding its Sea World and Busch Gardens empires. Disney (NYSE: DIS) has little reason to downgrade to the regional world of seasonal parks.

    Private equity is where the bidders would be, if they can afford it. Cedar Fair's balance sheet is thin on greenbacks and brimming with $1.9 billion in debt. Tack on the company's $1.6 billion market cap, and you're looking for a capital outlay of at least $3.5 billion for the company.

    Cedar Fair expects to generate between $950 million and $1 billion in revenue this year. Adjusted EBITDA is projected to clock in between $320 million and $340 million. Paying 10 times EBITDA isn't cheap, especially for a company that has been stagnant organically.
    Set the record streight, Rick...

    Do you really think Disney wants to "buy" into 2 billion in dept?
    Check out my other blog:

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    • #3
      Re: Should Disney Buy Cedar Fair? - Motley Fool article

      I'd hate to see Disney buy Cedar Fair. When I go to Cedar Point I am not looking for Disney. I'd rather they save the money and use it on their own parks. I believe in Cedar Fair and they will work this out.

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      • #4
        Re: Should Disney Buy Cedar Fair? - Motley Fool article

        Well, if "the Mouse" were somehow to acquire CF, and a certain Buena Park property it owns...there's where the "fifth gate" for DLR would be...

        --Barry
        God, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.

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        • #5
          Re: Should Disney Buy Cedar Fair? - Motley Fool article

          No, I like some of the Cedar Fair parks, but Disney doesn't need to have anymore parks until they complete building ones they already have such as DCA, DAK, MGM, and HKDL. Disney would also have to majorly renovate these parks. They would probably bare a name such as Disney Local so people realize they are not getting a real Disney experience.

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          • #6
            Re: Should Disney Buy Cedar Fair? - Motley Fool article

            Originally posted by GhostHost2 View Post
            No, I like some of the Cedar Fair parks, but Disney doesn't need to have anymore parks until they complete building ones they already have such as DCA, DAK, MGM, and HKDL. Disney would also have to majorly renovate these parks. They would probably bare a name such as Disney Local so people realize they are not getting a real Disney experience.
            why don't they name them all Disney california adventure, then everyone will know its not a real Disney experience.
            THIS SPACE FOR SALE OR LEASE





            PRESIDENT OF THE DISNEYLAND LOOP LOVERS ASSOCIATION

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            • #7
              Re: Should Disney Buy Cedar Fair? - Motley Fool article

              Originally posted by tahoebob54 View Post
              why don't they name them all Disney california adventure, then everyone will know its not a real Disney experience.

              Great Idea.

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              • #8
                Re: Should Disney Buy Cedar Fair? - Motley Fool article

                Disney would not buy Cedar Fair due to the fact that it would have to completely revamp every park, and tear down 99% of the substandard, non-Disney like rides.. It would be less expensive to build parks from scratch.

                Should Disney? No. It would be economically unsound, and/or beneath it's image. This is more down Blackstone's alley. If the company's $26 billion to buy the Hilton chain is turned down, the first place they should turn their sights to is Cedar Fair. CF wouldn't even have to sell the entire park - and could maintain their controlling interest.
                To Boldly Go Where No MiceChatter Has Gone Before!

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                • #9
                  Re: Should Disney Buy Cedar Fair? - Motley Fool article

                  Originally posted by Ride Warrior View Post
                  Disney would not buy Cedar Fair due to the fact that it would have to completely revamp every park, and tear down 99% of the substandard, non-Disney like rides.
                  Non-Disney, yes. Substandard, no. As far as roller coasters go Cedar Fair maintains some of the most technologically advanced roller coasters in the world. It's about roller coasters, not Disney quality dark rides.

                  If in some bizzaro world Disney did purchase Cedar Fair, it would be ironic if they tore down the "substandard non-Disney like" rides and left DCA standing.

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                  • #10
                    Re: Should Disney Buy Cedar Fair? - Motley Fool article

                    I usually am in total agreement with Munarriz, but he's out to lunch with this idea for the same reason Disney immediately rejected the possibility of acquiring Sea World from Harcourt Brace Jovanovich so many years ago.

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                    • #11
                      Re: Should Disney Buy Cedar Fair? - Motley Fool article

                      More likely, if they bought it they would keep Knott's and close the rest or sell off all that property for housing developments, thereby eliminating a competitor.

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                      • #12
                        Re: Should Disney Buy Cedar Fair? - Motley Fool article

                        Originally posted by merlinjones View Post
                        More likely, if they bought it they would keep Knott's and close the rest or sell off all that property for housing developments, thereby eliminating a competitor.

                        If Disney were to buy Cedar Fair and close all of the parks I would actually (I know its hard to believe) NEVER visit a Disney Park again. Seriously. Cedar Point is awesome. Now I would not mind if they closed a park or 2, but to close Cedar Point? BLASPHEMY. That would be a worse tragedy than Pirate's Lair, Light Magic, DCA, and Paul Pressler rolled into one.

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                        • #13
                          Re: Should Disney Buy Cedar Fair? - Motley Fool article

                          The chances that Disney would ever buy Cedar Fair are as likely as the Washington Nationals winning the 2007 World Series over the Tampa Bay Devil Rays:

                          Originally posted by Dana Carvey as George H. W. Bush
                          "Not gonna happen."
                          Sums it all up.

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                          • #14
                            Re: Should Disney Buy Cedar Fair? - Motley Fool article

                            Originally posted by merlinjones View Post
                            More likely, if they bought it they would keep Knott's and close the rest or sell off all that property for housing developments, thereby eliminating a competitor.
                            If they closed Great America - one of the two parks first built by J W Marriott in 1976, I will be VERY upset...

                            By the way, CBS - Viacom distroyed the charm that park had... I am still mad about them removing the railroad and moving it to Gilroy's Bonfante Gardins... It actually has been downhill slide ever since Marriott (the hospitality giant that they are) sold the property...
                            Check out my other blog:

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                            • #15
                              Re: Should Disney Buy Cedar Fair? - Motley Fool article

                              Back when the Paramount Park's where for sale Disney was seen in the park looking around at them. If anyone buys Cedar Fair it should be Blackstone.

                              Comment

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