Six Flags should be put up for sale, says activist investor

(Sharecast News) - Investment management firm and activist investor Jana Partners has called for American theme park operator Six Flags Entertainment to be put up for sale, according to a Reuters report on Tuesday. In a letter seen by the news outlet, Jana also urged the company to appoint a new board chair to replace Marilyn ​Spiegel who has been at the helm since 2023, raising concerns about whether the board can "deliver" shareholder value.

The letter comes just fix days after Six Flags named NFL tight end Travis Kelce as its new brand ambassador, partnering with the entertainment group on marketing and content creation.,

"It is now in the best interest of shareholders for the company to ​reverse course and engage with known buyer interest in Six Flags," Jana's managing partner Scott Ostfeld wrote, according to Reuters.

Six Flags shares were up 7% at $17.56 by 1600 GMT following the report.

The activist hedge fund, which revealed that it had a 9% economic stake in Six Flags back in October, had at the time called for operational improvements, along with improved marketing and customer experience.

As of Monday's close, Six Flag's market value had slumped by nearly 60% over the past year due to weak visitor numbers, blamed mainly on severe storms and extreme temperatures.

In August of last year, the company revealed in its annual results that the number of customers slumped by 9%. In November, the firm then appointed a new chief executive, John Reilly.

Following a merger in 2023 with Cedar Point, Six Flags operates a total of 42 amusement parks, water parks, and on-site resorts across the US, Mexico and Canada.