Six Flags' Rollercoaster Ride After Big Merger
A Bold Move with Unforeseen Challenges
In July 2024, Six Flags and Cedar Fair joined forces, aiming to become the largest amusement park operator in North America. Together, they now operate about 40 parks and water parks. However, the merger has not gone as smoothly as planned.
Financial Turmoil
By August 2025, Six Flags reported disappointing financial results:
- Revenue: $930 million
- Adjusted EBITDA: $243 million (far below expert predictions)
- Debt-to-Earnings Ratio: Skyrocketed to 6.2x
These poor results forced the company to consider selling off assets.
Forecast Cuts and Leadership Changes
Six Flags cut their 2025 EBITDA forecast by $215 million, and CEO Richard Zimmerman stepped down. The company blamed bad weather for the poor performance, but analysts point to rising costs and unmet merger benefits as the real culprits.
Stock Price Plunge
Since the merger, Six Flags' stock price has plummeted:
- From: Over $55 per share
- To: As low as $20 per share (a 64% drop)
Investors are far from pleased.
Legal Troubles
A lawsuit claims Six Flags did not disclose important information before the merger. The allegations include:
- Insufficient investment in parks and operations
- Millions more in spending needed to stay competitive
- Unrealistic financial plans presented to investors
What This Means for Investors
If you invested in Six Flags because of the merger, you may be able to join the lawsuit. The deadline to ask to be the main plaintiff is January 5, 2026.
Need More Information?
For more details or questions, you can contact the law firm handling the case. They have offices in Los Angeles and can be reached by:
- Phone
- Website
