Six Flags Entertainment Corp is considering merging with Cedar Fair LP, which operates Valleyfair, Reuters reported this week based on findings from a confidential source. The two entities are the country’s largest amusement park operators.
Cedar Fair operates 13 parks across the country, and Six Flags operates 23 parks throughout the U.S. and five parks in Canada, Mexico, China and Saudi Arabia, according to their websites.
Reuters reported the potential move could show that Six Flags is interested in widening its reach to increase its ticket pricing power.
When the news broke of the potential merge Oct. 2, Cedar Fair’s stock rose 4.7% from the previous day, and Six Flag’s stock went down 2.2%, the Minneapolis-St. Paul Business Journal reported.
Another sign of a potential merge was reported by Seeking Alpha, which stated Cedar Fair canceled its appearance at an annual consumer and media conference. This behavior, the outlet claimed, is often a telltale sign that a company might be merging.
Valleyfair, the Upper Midwest’s largest amusement park, opened in 1976. In 1978, Cedar Point in Sandusky, Ohio acquired Valleyfair, under the management of Cedar Fair, according to a Valleyfair spokesperson.
A Valleyfair spokesperson said Thursday more information will be released from Cedar Fair in the next few days, but she could not comment at this time. Six Flags did not respond to a request for comment.