Over the past few weeks, there has been wide speculation regarding the sale of the Paramount amusement and water parks to a third party, which may include Cedar Fair. The topic has been addressed widely in forums on this website and in circles of different amusement and investment communities around the country. The question that remains to be answered is this; would a purchase of Paramount’s park division be a sound investment for Cedar Fair and would that purchase be the best for the parks’ customers. Let’s take a look at what an acquisition would mean, with the assumption that Cedar Fair has the capital access it needs to complete a purchase of some or all of the Paramount franchise.

So, what do Disney, Paramount, Six Flags and Busch all have in common? Each of these companies and their amusement parks represent national, if not international, name recognition, marketing strategies and family tourism destinations. Cedar Point has recognition for its collection of thrill rides, but it is still a primarily regional park that caters to a regional base. The other Cedar Fair parks, maybe with the exception of Knott’s, are considerably less well known and are not considered to be household names. The addition of the Paramount collection would compliment wonderfully Cedar Fair’s dedication and role as America’s family and local amusement park operator. While the parent company would double in size, each park would retain the local heritage and tradition they always enjoyed. This represents a choice for the consumers, for these parks are very different than the ones mentioned above, and choice is always a good thing.

If Cedar Fair were to purchase the Paramount Parks, and if the rights to the Paramount media are included in the sale, each of Cedar Fair’s original parks could be put further into the national spotlight with a national marketing campaign while keeping their regional, traditional, family market happy. Just as the addition of the Peanuts gang originally helped the Cedar Fair family, so too would the addition of everyone in the Paramount and Viacom families. The Nickelodeon and Hanna-Barbara franchises would play nicely, I have no doubt, with Snoopy and Charlie Brown. These additions would provide a world of opportunities to the folks at Cedar Fair’s Panning and Design to create new and wonderful rides and attractions.

What makes this deal appealing is the product for the consumer. A day at a local park, like Cedar Point, will always be cheaper than a day at Walt Disney World. Plus, with an enhanced product, the admission price would be a better deal than ever. There has been talk that Cedar Fair may stop heavily investing in roller coasters at Cedar Point if this deal were to happen. This is nonsense and unfounded. Cedar Fair has completed deals in the past and has never been cheap with Cedar Point’s expansion. The management of Cedar Fair has been completely loyal and dedicated to the patrons of their flagship park. They have never given any reason for us to believe that they will not continue to offer that same dedication in the future.

So for us, the fans of Cedar Point, this deal should make us happy. Season passes could be valid at double the parks with this acquisition, that’s bang for your buck. The bottom lines are these. For investors: well run amusement parks make money, the Paramount parks are no different and will continue to supplement, in huge amounts, the Cedar Fair income and dividend. For park goers: the experience will only get better with a greater amount of themed attractions and fun for the whole family. The Point Online trusts that the good people at Cedar Fair will take care of everyone and everything, and we trust our experiences, as investors and enthusiasts, will continue to get better, no matter the outcome of this rumored deal.