Author Topic: Worlds of Fun Potentially up for Sale (Read 9925 times)

Jason · « **on:** Mar 9, 2009, 06:36 »

http://www.cedarfair.com/ir/press_releases/index.cfm?current_root=15&mode=story&story_id=190

This was a surprise to me this morning. Now I have to wash coffee off my computer screen.

Adam420 · « **Reply #1 on:** Mar 9, 2009, 06:42 »

I hope not!
Unless someone else can do better then them, if that is possible.

Jason · « **Reply #2 on:** Mar 9, 2009, 06:46 »

If they are sold I hope that the buyer gets Valleyfair as well. I go there more than any other CF park and I would hope that some type of regional season pass would get me in there.

jlovesee · « **Reply #3 on:** Mar 9, 2009, 07:27 »

Oh my gosh... I think I will have to join you Jason in cleaning off my computer screen.

Here's another thought... do you think they would annouce these two particular parks unless they had a potential buyer?

Jennifer

Orient Wolf · « **Reply #4 on:** Mar 9, 2009, 08:30 »

I hope Parc Management buys the parks. This made my day. I'm so excited!!!

Jason · « **Reply #5 on:** Mar 9, 2009, 08:49 »

I wouldn't consider this good or bad news until a buyer is identified.

Parc Management doesn't get me excited at all. What have they done with the parks that they've bought over the last couple of years? Merlin is probably the most exciting possibility out there. Jeff and I discussed the fact that they wanted to bring Legoland to Kansas City so they're certainly interested in the area. Camp Snoopy could be expanded into the HoA Theater and turned into a mini-Legoland and a new outdoor theater could be built in the Orient lot (Ben's idea).

I'm guessing that Snoopy would go regardless of the buyer.

Orient Wolf · « **Reply #6 on:** Mar 9, 2009, 09:04 »

The reason I like PARC is becaues they would likely keep most if not all of exisiting local management intact. They also would let them work more independently (something I think would greatly benefit WOF). As for the past couple of years they have installed a junior Vekoma invert in Oklahoma, a Sally shoot em up in Colorado, and a Zamperla MotoCoaster in New York. While not the most expensive attractions they are certainly entertaining and fit in with each park that got them.

I agree Merlin could bring some awesome things but they are likely going after Busch Entertainment right now. And you're right CF has exclusive theme park rights for Snoopy in the United States.

Jason · « **Reply #7 on:** Mar 9, 2009, 09:09 »

Those additions that you listed aren't bad at all. I've even heard that the Vekoma is pretty good for a kiddie invert because of the new restraints.

The Merlin idea certainly seems like a long shot but seems like the best case scenario IMO.

smileyboy57 · « **Reply #8 on:** Mar 9, 2009, 09:16 »

Where did this come from?

Bradley Robertson · « **Reply #9 on:** Mar 9, 2009, 09:42 »

Quote from: Orient Wolf on Mar 9, 2009, 09:04

a Sally shoot em up in Colorado

Which I have to say I would love to see WoF get one of these. It was really well done and a huge improvement over version 1.0

As to the park being for sale, It really doesn't bother me. I have a hard time believing there are any buyers. What chain is going to be able to get financing right now? US financing sucks right now, as does the EU (Merlin). What does scare me is CF potentially closing WoF and or VF at the end of this season/indefinitely until a buyer is found.

jlovesee · « **Reply #10 on:** Mar 9, 2009, 09:48 »

I am agreeing about Parc Management, I was extremely impressed with how they handled Darien Lake, they came in but didn't bully their way in (no my way or the highway kind of thing). It also seems they have really improved Elitch's and Frontier City, both parks that had taken a drastic turn for the worse under Six Flags.

I became sick to my stomach earlier today when I thought about what would happen if we had another Cedar Fair-like takeover, they pretty much gutted the place in more ways then one. I am really worried about the fact that another company may have another "10 year learning curve".

I may not always agree with what choices Cedar Fair has made, but atleast I knew what to expect.

Jennifer

jlovesee · « **Reply #11 on:** Mar 9, 2009, 09:57 »

I really doubt they would close a park that has always been profitable. They are not trying to sell WOF because it doesn't make them money, but more they need the giant influx of money they would receive from selling the park.

Geauga Lake was a completely different story.

Anyway who would build an 8 million coaster and then close the park the next year? That would make no sense at all.

Jennifer

AyTrane · « **Reply #12 on:** Mar 9, 2009, 10:13 »

Unless they could turn that around in that short amount of time. In which case, the park is profitable enough to keep open.

Bradley Robertson · « **Reply #13 on:** Mar 9, 2009, 10:48 »

Quote from: jlovesee on Mar 9, 2009, 09:57

Anyway who would build an 8 million coaster and then close the park the next year? That would make no sense at all.

Jennifer

By that logic it also makes no sense to sell it either, but that is obviously an option. Between Patriot and Prowler the park has a decent amount of debt (assuming the Patriot note isn't paid off). By selling the park they would rid themselves of those liabilities (meant in the accounting sense) and get cash to help pay for the debt they accrued with the Paramount properties. I am guessing that the Debt to income ratio for WoF and VF are the highest in the chain.

I still say there is a possibility for it to close temporarily to cut costs. If they they don't have the money for operations it doesn't matter how profitable they are. I'm facing that where I work. The part of the business I work in has not only been the most stable in regards to revenue, but it has also shown growth in the last few years. Yet we still at facing a reduction of 26%. I don't see it being another Geauga Lake, but I think the possibility of Worlds of Fun not opening for a full season in 2010 is there.

Jason · « **Reply #14 on:** Mar 9, 2009, 11:22 »

If reducing overall debt is the goal then closing WoF or Valleyfair temporarily wouldn't help them at all. It would actually hurt. They mentioned that both parks are profitable. It would also kill their value if they continued to try and sell them while they were shut down. This sounds like a move to get as much cash as possible not a move to cut costs.

silverstreak · « **Reply #15 on:** Mar 9, 2009, 11:27 »

once rides start getting moved to other park i will worry...cga seems most likely to close...that land has to be worth a lot...

jlovesee · « **Reply #16 on:** Mar 9, 2009, 11:43 »

I agree with Jason on this one, and while doing so I also realize the economy we live in now. One point to remember on the economy though, back in the 1980's when the economy was at one if it's historic lowest points, Worlds of Fun was enjoying some of the highest attendance in its history. The poor economy I honestly believe will help WOF not hinder it. People stay home, and vacation at the regional parks. Cedar Fair is trying to cash out the parks, they want the $40-60 million from Worlds of Fun, it helps them out in the short term while taking away long term profits from both parks.

Jennifer

Jason · « **Reply #17 on:** Mar 9, 2009, 11:49 »

Quote from: silverstreak on Mar 9, 2009, 11:27

cga seems most likely to close...that land has to be worth a lot...

I'm not sure if Cedar Fair owns the land. I've seen it discussed but I'm not sure how that part shakes out. I agree that it's probably the least attractive park for the chain to keep. This mess with the city and the 49'ers has been dragging on. I'm surprised that a football team would even consider buying a park though.

AyTrane · « **Reply #18 on:** Mar 9, 2009, 01:07 »

If they wanted to sell the park to the 49'ers, they should gut the park of it's rides first, and save them some capitol from buying new rides for their other parks. The big coasters at Worlds of fun don't have this luxury, if they were moved to other Cedar Fair parks, the support structure would have to be completely redesigned to fit the topography (most of the other parks have fairly flat land to build on).

What I'm assuming, based off that report, is that Cedar Fair is worried about losing money on Worlds of Fun and ValleyFair in the future. Not that they aren't profitable, just that they are too close to being potential failures; in other words: Potential Risk. Worlds of Fun has seen a decrease in travel to the park (cities like Omaha, Wichita, Des Moines, St. Louis, ect), while seeing an increase in Kansas City area business. In Macro business, this can cause a problem if you are trying to steal business, or create new business from an extended market. From this viewpoint, the park could only grow so large with the income coming in from just local sources, and not tourism.

It could really help these parks to build a record breaker, but then you would have to spend the capitol, and potentially not bring in the customers.

Orient Wolf · « **Reply #19 on:** Mar 9, 2009, 01:28 »

1. CGA has few rides worth relocating.

2. I don't think WOF is on the brink of failure only CF would rather invest capital at other parks in the chain. I have been saying for a couple of years now that WOF needs to do more to attract out of market visitors (that was before the economic downturn). With little competion in Kansas, Nebraska and Iowa and the proven success of the Village I think WOF has potential to be a developed resort. CF doesn't want to spend the money to make it happen but it could make a good investment opportunity for someone else. Thus, making WOF one of the more attractrive properties for purchase.

Swoosh · « **Reply #20 on:** Mar 9, 2009, 01:45 »

Worlds of Fun would be a good park for the Herschend's to pick up (well a lot better of a park to pick then WA was).

Orient Wolf · « **Reply #21 on:** Mar 9, 2009, 01:50 »

^I was thinking the same thing in regards to Wild Adventures earlier today. But Herschend has just been so frugal lately I think it's rather unlikely they'll purchase WOF.

HalloweenHauntFreak · « **Reply #22 on:** Mar 9, 2009, 01:51 »

Why not MIA? That place is in the middle of nowhere.

Ken12 · « **Reply #23 on:** Mar 9, 2009, 01:52 »

If you don't think all of the parks are for sale you are crazy. They are just declaring what has been on the table for a while, and in fact I wouldn't be surprised if it was a tiny bit of a stock mover as well.

If you want Wof or Valley then it isn't going to come cheap. Agreed, its not a firesale, its 'we'll sell you this if you want to pay the premium that comes with it'. In this economy if a company is going to pay $100 million for a park worth $60 or 80, then darn right they'd sell.

Haunt- Its been reported that MIA is one of the most profitable parks in the chain.

Swoosh · « **Reply #24 on:** Mar 9, 2009, 01:56 »

I would think VF would be cheaper than WOF though. There are more high profile rides at WOF then VF.

I think what annoys me the most about this is, everyone automatically is jumping to the "Oh not they are going to 'Geauga Lake' it" -- not a chance. You don't close down something that is making you money and especially not after spending $8mil on a new wooden coaster.

HalloweenHauntFreak · « **Reply #25 on:** Mar 9, 2009, 02:15 »

Exactly (and it's pretty much the same case for both parks).

Swoosh · « **Reply #26 on:** Mar 9, 2009, 02:26 »

However (and no offense to VF as I do enjoy that park) other than Wild Thing / Extreme Swing / Power Tower -- I cannot think of too many things that they would move anyway if VF was to get "GL'd". WoF on the other hand. Yikes.

I cannot understand with Carowinds is not on the list and like mentioned above Michigans Adventure -- and the arguement that they are profittable is a dubh statement, almost all of the parks in the chain are.

SCIENCEWIZRD · « **Reply #27 on:** Mar 9, 2009, 05:08 »

Lets play the be Cedar Fair game:
CF: "Lets buy some parks that we don't know how to run"
Executives: "OK!!!"

[a few years pass]

CF: "Oh sheet! The economy is tanking... lets sell off two of our most profitable parks instead of the ones that aren't raking in very much cash!!!"
Executives: "Yes, lets lose our strong point of our company!"
-----------------------------------------------------------------------
Good job CF!....

Orient Wolf · « **Reply #28 on:** Mar 9, 2009, 05:21 »

^I think you're mistaken. Cedar Fair is not selling CP, KBF, KI, or CW. They're not losing the strong point of their company.

Swoosh · « **Reply #29 on:** Mar 9, 2009, 05:21 »

I still say the only reason CedarKing (Since they're selling VF - they can't call it CedarFAIR anymore) bought the Paramount Parks in the first place is because he (Kinzel) wanted Kings Island.

Author Topic: Worlds of Fun Potentially up for Sale (Read 9925 times)

Adam420