Six Flags will not swallow Cedar Point and its parent company -- at least not for $4 billion.
Cedar Fair LP, an Ohio-based company that owns several amusement parks, including Cedar Point in Sandusky, Ohio and Michigan’s Adventure outside of Muskegon, rejected Six Flags' $4 billion offer in cash and stock, Reuters reported last Friday.
Inside sources tell Reuters explained why the deal didn’t go through:
Cedar Fair responded that Six Flags’ bid was too low, not least because it did not compensate Cedar Fair shareholders for giving up on the company’s tax-advantageous publicly traded partnership. This allows the company to pay out the majority of its earnings to shareholders without first paying U.S. federal or state income taxes.
There is currently no indication that Six Flags will place another bid for their counterpart, sources said.