Rival theme parks Six Flags Magic Mountain and Knott’s Berry Farm are being brought under one umbrella.
Cedar Fair, which owns Knott’s Berry Farm in Buena Park, and Six Flags Entertainment Corporation, which owns Magic Mountain in Valencia, announced plans for a merger on Thursday.
Together, the companies own more than 40 regional theme parks across North America. But, the two parks in Southern California would be the only parks included in the merger operating long-term in the same market.
Six Flags also has parks in Vallejo and Santa Clara.
“The theme-park industry is struggling to rebound from the pandemic, when many parks were closed or operated under restrictions,” WSJ reported. “While demand in other hard-hit industries such as cruising has surged past pre-pandemic levels, attendance at U.S. theme parks hasn’t yet gotten there.”
Axios reports Six Flags shares are down more than 62% over the last five years, while Cedar Fair shares are down more than 30%.
The companies described the deal as a “merger of equals,” giving the new entity — which will be named Six Flags — an enterprise value of $8 billion.
