NFL star Travis Kelce is collaborating with activist investor Jana Partners to initiate significant changes at Six Flags. This initiative involves Kelce and other investors acquiring a 9% equity stake in the iconic theme park brand, valued at approximately $200 million. Jana Partners aims to enhance Six Flags’ marketing strategies and improve the overall customer experience.
Strategic Moves by Jana Partners
Jana Partners has hinted at a potential overhaul of leadership and considers a sale to enhance shareholder value. Scott Ostfeld, the managing partner and portfolio manager at Jana, expressed optimism about collaborating with the Six Flags board and management to drive value for all stakeholders.
Six Flags’ Recent Performance
- Despite a challenging start to the year affected by weather and attendance issues, Six Flags enjoyed a rebound over the summer.
- Attendance records showed year-over-year growth, particularly in the nine-week period ending August 31.
- However, the company’s stock price has faced decline, dropping from nearly $50 per share at the start of the year to approximately $21 recently.
Merger and Future Plans
Last year, Six Flags announced a merger with Cedar Fair, known for its popular parks like Cedar Point in Ohio. The combined company, now based in Charlotte, North Carolina, experienced a rise in share prices following the merger. It also revealed an ambitious $1 billion spending plan, which includes exciting new attractions such as a record-breaking dive coaster at Six Flags Over Texas.
Investor Interest and Market Reactions
Following Jana Partners’ involvement, Six Flags’ stock jumped nearly 20% within an hour after a Wall Street Journal report highlighted the investor’s intentions. This surge indicates a strong market interest in potential changes at Six Flags.
Travis Kelce’s Connection to Six Flags
Travis Kelce, engaged to singer Taylor Swift, is approaching retirement from the NFL and is expanding his business portfolio. He recently secured a $100 million deal with his brother for their podcast and collaborated with American Eagle on a clothing line. Kelce has fond memories of visiting Six Flags parks during his childhood and is eager to shape the future of these beloved attractions for younger generations.
Supporting Investors and Competitive Landscape
Jana Partners is not alone in its quest for influence at Six Flags. Other notable investors include Gap CEO Glenn Murphy and Reddit chair Dave Habiger, with discussions about board appointments for them. Additionally, Sachem Head Capital Management has already secured a board seat, while Land & Buildings proposed real estate changes last month.
With over 20 years of experience in shareholder activism, Jana Partners aims to leverage strategies around operations, capital allocation, and corporate governance to enhance company performance. No doubt, the focus on Six Flags’ future will attract considerable attention from both the market and theme park enthusiasts.
