An investment firm that teamed up with NFL star Travis Kelce to save Six Flags Entertainment Corporation is now urging the embattled theme park operator to explore a sale, according to a new report.
Investors including New York-based hedge fund Jana Partners and Kelce — Kansas City Chiefs tight end and global pop star Taylor Swift’s husband — acquired a combined stake of about 9 percent in Six Flags last October, then valued at $200 million.
Jana Partners hoped to improve Six Flags' marketing and enhance customers’ experience at the parks, The Wall Street Journal previously said when reporting on the acquisition. The investment firm also reportedly wanted to explore a potential sale to boost the operators’ share price.
Six Flags stock traded around $12.43 per share Wednesday, around half the price of its yearly high of nearly $25.
Amid growing losses and lower attendance at the parks, Jana Partners is now pushing forward with its idea of a potential sale, the Journal reported Tuesday.
Jana Partners called Six Flags’ board of directors Tuesday to immediately hire an investment bank to explore a sale, people familiar with the matter told the Journal. The hedge fund reportedly cited its disappointment with the theme park operators’ second-quarter earnings.
Six Flags had a net loss of $203 million in its second quarter, compared with a net loss of $100 million during the same time last year, according to company earnings reported in early August.
The theme park operator saw 13.1 million guest visits in its second quarter — about a 7 percent decrease from 14.2 million visits a year before, according to the report.
When asked about Jana Partners urging Six Flags to explore a sale, the theme park operator told The Independent that it is “committed to acting in the best interests of all shareholders.
“We have a history of engaging constructively with all of our shareholders and value their perspectives. We are focused on executing on our strategic priorities and are committed to maximizing shareholder value.”
The Independent has reached out to Jana Partners for comment.
Kelce, a theme park enthusiast, celebrated the investment in Six Flags last October, writing on Instagram, “Couldn’t pass up the opportunity to continue the tradition and make Cedar Point and Six Flags even more special for the next generation of families!”
The football player was referring to Six Flags’ Cedar Point theme park in Ohio, which he grew up going to.
“Excited to partner with JANA Partners as an investor in Six Flags. So crazy to even imagine this is real, but you gotta love it when life comes full circle,” Kelce said at the time.
Six Flags is also facing legal trouble after three people who say they suffered major brain injuries riding one of its roller coasters in California sued the operator.
The coaster at the center of the lawsuits is the X2 at Six Flags Magic Mountain, which features “360-degree rotating seats and head-first, face down drops,” according to the theme park’s website.
“No ride like that should be allowed to exist,” attorney Christopher Bulone told reporters when announcing the lawsuits Tuesday, per CNN.
Six Flags wouldn’t comment on the pending cases but told local outlet KABC that the coaster “remains closed at this time.”
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