Six Flags and Cedar Fair Merger Faces Scrutiny from Justice Department

Introduction

Six Flags and Cedar Fair have revealed that the Justice Department is seeking additional information regarding their proposed merger. This disclosure came through a securities filing, and the companies have committed to complying with the request by May 2.

Merger Details

Late last year, Six Flags and Cedar Fair reached an agreement to merge in a deal valued at approximately $2 billion, entirely in stock. This merger would result in the creation of a new regional theme-park company with a nationwide presence. While the two companies' parks have limited geographic overlap, they do have locations near Los Angeles and San Francisco.

Subscription Pass Strategy

Top-level executives from both Six Flags and Cedar Fair have hinted at their intention to leverage their expanded scale following the merger. They plan to introduce a subscription pass that provides access to all or multiple parks within the chain. This move is intended to enhance their competitiveness against larger rivals such as Disney and Comcast's Universal. Additionally, it positions them favorably against other popular at-home entertainment options like video games and streaming platforms.