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Six Flags is nearing a deal to merge with Cedar Fair Entertainment, a move that would combine two of the largest regional theme park companies in the U.S., the Wall Street Journal reported.
An agreement between the two companies could be announced this week. Cedar Fair owns theme parks nationwide, including Knott’s Berry Farm in Buena Park, while Six Flags operates 27 parks across the U.S., Mexico and Canada.
The Journal reported that the merger of the two companies would bolster Six Flags’ parks portfolio, especially in the Midwest. The merger would also mean that Cedar Fair would join a nationally recognized brand, though it’s unclear if any parks would be rebranded under the Six Flags name.
Both companies have market values of about $2 billion or less. Shares of Six Flags increased more than 6% and shares of Cedar Fair rose more than 8% after news of an imminent deal was announced.
Shares of Six Flags have risen steadily since it filed for bankruptcy in 2010 until the pandemic forced it to close. Since then, the company has struggled to rebound since reopening, the Journal reported.
Six Flags and Cedar Fair parks both cater to local customers as opposed to Disney and Universal, who rely more on travelers coming to the area for multi-day trips, WSJ reported.
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