Skift Take
SeaWorld is immensely positive that travel will make a significant rebound soon since why would they offer more than $3 billion for Cedar Fair if it didn’t see the leisure and home entertainment sector rapidly approaching pre-Covid metrics.
Rashaad Jorden
SeaWorld Entertainment Inc has actually offered to purchase theme park operator Cedar Fair LP for $3.4 billion, according to a source acquainted with the matter.
SeaWorld has actually made a bid of about $60 per share in money, the source said, representing a premium of about 21% to Cedar Fair’s Monday close.
Cedar Fair confirmed the deal in a statement, adding its board will examine the proposition. SeaWorld declined to comment.
Shares of Cedar Fair increased as much as 12.5% prior to being stopped, while those of SeaWorld were up about 5%.
The deal comes as the leisure and home entertainment sector gradually returns on its feet after the Covid-19 pandemic and subsequent lockdowns hammered the industry for over a year.
Sandusky, Ohio-based Cedar Fair has a market cap of about $2.83 billion, according to Refinitiv IBES information.
Cedar Fair rejected a takeover deal of $4 billion, or about $70 per share, from larger peer Six Flags Home entertainment Corp in 2019, saying the quote was too low.
Bloomberg first reported SeaWorld’s deal earlier on Tuesday.
This short article was composed by Greg Roumeliotis from Reuters and was lawfully licensed through the Market Dive Content Market. Please direct all licensing concerns to [email protected]