Update: Cedar Point Owners Reject $4 Billion Six Flags Offer
Cedar Fair, the Ohio company that owns Cedar Point. Michigan's Adventure, Knott's Berry Farm in California, and eight other amusement parks around the country, has rejected a $4 Billion dollar offer from Six Flags Entertainment Corp, the owners of Six Flags Amusement Parks.
Reuters reported exclusively that the offer was rejected as too low. And the report goes on to say the offer was also rejected for not being enough in cash, and for an additional reason.
Cedar Fair responded that Six Flags’ bid was too low, not least because it did not compensate Cedar Fair shareholders for giving up on the company’s tax-advantageous publicly traded partnership. This allows the company to pay out the majority of its earnings to shareholders without first paying U.S. federal or state income taxes.- Reuters
The report also speculates that with the stock market reaction to the proposed deal, along with fan reaction, Six Flags may not be making much of a higher offer.