Magic Mountain officially off the chopping block (for now)

[billwun]

According to a news story posted Thursday morning (1/11/07), Six Flags has announced the names of the parks they will be selling off, but the list no longer includes the Magic Mountain property.

As posted on Yahoo News:

The seven parks include Six Flags Darien Lake in Buffalo, N.Y.; Six Flags Elitch Gardens in Denver; Frontier City and the White Water Bay water park in Oklahoma City; SplashTown in Houston; Waterworld USA in Concord, Calif.; and Wild Waves and Enchanted Village in Seattle.

Full article:
http://news.yahoo.com/s/ap/20070111/...six_flags_sale

[billwun]

Looks like Magic Mountian has been given a new lease on life. Six Flags posted the names of the seven parks they are selling off, and Magic Mountain wasn't one of them.

I was worried as Hell if the park had closed then all of the mid- to late-teen "tough guy" types that made up a good percentage of the clientele were going to descend upon Disneyland.

[PirateMickey]

Like so many other properties up for sale...Pulled off of the market due to lack of interest???

Thanks for the info!

[Mac Daddy]

I want to know how it's possible to buy SEVEN theme parks for 300 million.
That seems like quite a bargain to me.

[Peabody]

Like so many other properties up for sale...Pulled off of the market due to lack of interest???

Bingo! In a previous conference call they saidthey had recieved bids, but the bids were submitted to not include SFMM. Smart move by the bidder I say!

[cakvalasc]

The "tough guy" types can't afford Disneyland anyway don't worry!

[InnerSpace]

That's great news! I was worried the park would be closing because I like Magic Mountain. I don't like the audience, but I love the thrill rides and I wouldn't want to see them turned into houses.

[ekester]

I want to know how it's possible to buy SEVEN theme parks for 300 million.
That seems like quite a bargain to me.

Not a bargain if they can't make money. I could buy a car for $100, but if it cost me $5000 to fix enough to be functional again, it wouldn't be a great investment.

[barfownz]

Waterworld USA in Concord, Calif.

WHAT?! I go there all the time! I hope Disney buys it!

[tloolgb]

I want to know how it's possible to buy SEVEN theme parks for 300 million.
That seems like quite a bargain to me.

Find a seller that is in $$$$ major debt.

[mainstreetcm]

$300 million for 7 seven theme parks isn't bad. Especially since those that are buying the, probably know what shape they are in. If it costs $300 million for all seven parks and the company just invents $50-$100 million in each park to get them up to par (and we all know how some Six Flags are run folks) and they can get people to come and visit, these regional parks will turn major profits for the buying company.

Very smart move if the company knows what the hell they are doing. Heck, they may just be buying the parks to shut them down and sell the land at a premium price, which of course makes a lot of business sense.

[Melonballer]

I want to know how it's possible to buy SEVEN theme parks for 300 million.
That seems like quite a bargain to me.

I don't know about the other properties, but Enchanted Parks near Seattle is worth about $100.

[cellarhound]

According to a news story posted Thursday morning (1/11/07), Six Flags has announced the names of the parks they will be selling off, but the list no longer includes the Magic Mountain property.

As posted on Yahoo News:

The seven parks include Six Flags Darien Lake in Buffalo, N.Y.; Six Flags Elitch Gardens in Denver; Frontier City and the White Water Bay water park in Oklahoma City; SplashTown in Houston; Waterworld USA in Concord, Calif.; and Wild Waves and Enchanted Village in Seattle.

Full article:
http://news.yahoo.com/s/ap/20070111/...six_flags_sale

My understanding, that these properties are being sold to a private real estate equity firms and be run by PARC Management via lease. Done deal, no arguing over who is buying what...

I think it was a smart move not to sell MM, personally. Partly because it is a warm climate park, and to sell it off would adversely effect Six Flags bottom line... Where as keeping it does improve it all around because now they have less overhead in the winter months.

It doesn't mean however that they will not sell MM in the future...

[sediment]

I want to know how it's possible to buy SEVEN theme parks for 300 million.
That seems like quite a bargain to me.

I don't consider them theme parks. I consider them amusement parks.
And, if that's what they're worth, that's what they're worth. No one was willing to pay more for them, so that's it. That's the price the market will bear. That's the equilibrium price at that moment.
And Six Flags needs the money because the management group is heavily in debt for overpaying for Six Flags in the first place.

The seven parks being sold drew a collective attendance of 3.6 million in 2006 and generated about $30 million in earnings before interest, taxes, depreciation and amortization.

Earnings AFTER I.T.D.A. is probably a very different story. Looking at probably a 4% return.

[barfownz]

I'm glad it doesnt include Six Flags: Marine World