As the news of Six Flags Entertainment’s acquisition of SeaWorld continues to ferment，Outside opinion，Zhonghong Shares, which is about to be delisted from the A-share market, may be involved。

Not long ago，According to multiple foreign media reports，Six Flags Entertainment intends to acquire some or all of SeaWorld theme parks。

This is not the first time SeaWorld has been rumored to be acquired。Back in October 2017，There are rumors that Merlin Entertainments is interested in acquiring two Busch Gardens at SeaWorld，But this transaction did not occur。According to foreign media reports，Sesame Street theme park at SeaWorld and Merlin Legoland have similar consumer groups，Merlin is also currently looking for a location to build a third Legoland in the United States，But the different treatment methods of marine life between the two may be one of the important reasons for the breakdown of negotiations。

Theme park industry expert also analyzed Disney ahead of Merlin Entertainments acquisition rumors、Universal Studios、Six Flags Entertainment、Cedar Entertainment，Even the possibility of Discovery Communications, the parent company of Discovery Channel, acquiring SeaWorld。188bet online sports betting

Three reasons why Six Flags may acquire SeaWorld

2017，Orlando, Florida’s theme park attendance accounts for one-third of North America’s total attendance，The city also plans to invest $10 billion in hotels over the next five years、Retail, dining and entertainment area、Attractions and other items。Florida has always been a battleground for theme park giants，But Six Flags Entertainment did not build a theme park in this place。The combined number of tourists with SeaWorld exceeds that of Universal Studios and the brand linkage effect generated after the merger may be the benefits of Six Flags' acquisition of SeaWorld。

188bet Online Sports Betting and Casino 1. Enter the theme park "Holy City"

Florida is known as the "Holy City" in the theme park world，It is a very important market。Among the top six most visited theme parks in the United States，Five in Central Florida，The four most popular water parks in the United States are all concentrated in Florida，Florida tourist arrivals hit 1 in 2017.16.5 billion people，Refreshing the record for eight consecutive years。Five of SeaWorld’s 11 theme parks are in Florida，Includes the company’s two busiest theme parks and two most visited water parks。In addition，The number of visitors to these four major parks is higher than the number of visitors to similar parks at Six Flags。

Six Flags has avoided entering the competitive but lucrative Florida market，Because of the construction of a new paradise，Enhancing a brand’s local influence requires time and money。Once Six Flags successfully acquires SeaWorld，Then Six Flags will be able to gain a foothold in the important battlefield of theme parks in a very short time。

2. Generate synergy effect

Six Flags had 30.8 million visitors last year，SeaWorld received a total of 20.8 million visitors。Based on the number of visitors，These two companies are respectively the seventh and ninth largest theme park operators in the world，But if two companies merge，After the new company exerts synergy effects，The number of tourists can surpass the third-ranked Universal Studios。

Not only the number of tourists has increased, but there are other benefits after the merger:First, increase operating income.After Six Flags acquires SeaWorld, annual revenue may increase from 14.US$500 million to US$2.8 billion。Although Six Flags operates more than twice as many parks as SeaWorld，But after the acquisition, SeaWorld can bring more revenue。The second is to improve operational efficiency.Not only can the company’s domestic marketing activities cover a wider range after the acquisition，Future companies have great synergies when purchasing rides or dealing with other suppliers，Conducive to cost cutting。

3. Complementary brand advantages

After the merger of the two companies, the brands can form complementary advantages.Six Flags’ licensed DC Comics characters can enter SeaWorld to help attract teens and younger adults。If the brand is repositioned after the merger，This hypothesis may become a reality。

On the other hand，The Sesame Street brand licensing obtained by SeaWorld can also help Six Flags attract more family consumers。After the merger of the two companies, there will be more than 30 parks，New companies can even introduce more third-party brands to expand their scope of influence，And third-party brands are also willing to use Six Flags or SeaWorld to enhance their brand influence。

Potential obstacles to acquisition

However，A person who has been working in SeaWorld for 19 years thinks，From a Six Flags perspective，It doesn’t make much sense to acquire all the parks in SeaWorld，Six Flags has some parks that don’t need or even want SeaWorld。He pointed out some of the obstacles to Six Flags' acquisition of SeaWorld in terms of the compatibility of Six Flags and SeaWorld and the different financial performance of the two。

Sea World San Diego has always been a hot potato for successive successors。First，Due to the unfriendly local political atmosphere，The development of this park is subject to many restrictions，The local government has also imposed strict restrictions on the height of many properties in the park。Secondly，The park is close to the water，The transaction involves more red tape and considerations。Last，After all other procedures are completed，The deal must be approved by the California Coastal Commission。

Six Flags may not be too interested in SeaWorld San Antonio。The main reason is，This park is too close to Six Flags Fiesta Texas，Now both companies exist at the same time，It’s okay to be competitors to attract tourists，Once merged，Different season ticket prices will result in reduced ticket revenue，Paradise parks in two places will also compete in the choice of investment in new attractions。

Similar mergers and acquisitions have lessons learned。Six Flags acquired SeaWorld Ohio in 2001，And merged with Six Flags Ohio to form Six Flags World of Adventure。The two companies competed in the same market for decades before the merger，But after the merger, other parks in the area closed one after another，And caused large areas of land to be abandoned。

Other parks in SeaWorld are also relatively close to Six Flags.Only a 30-minute drive from Sesame Street to Six Flags Great Adventure，Busch Gardens Williamsburg is 2 minutes away from Six Flags Great America.5 hours drive。In all parks，Six Flags’ acquisition of Tapa Busch Gardens seems more reasonable，Because this park is easier to integrate into Six Flags’ existing product system。

Similar to Six Flags Great Adventure，Tapa Busch Gardens is known for its world-class roller coasters and animal attractions。Tapa Busch Gardens able to operate year-round，With the extension of operating hours of many attractions in the park，Not only can it help Six Flags improve profitability，It can also help the Six Flags brand enter the Florida tourism market。Although Six Flags may also be trying to figure out what to do with the many parks at SeaWorld Orlando，But SeaWorld is unlikely to break up the company，Selling out the most profitable theme park。

In addition，The current different performances of the two companies in the stock market also have a certain impact on mergers and acquisitions。Six Flags Entertainment’s third quarter financial results fell short of market expectations，And SeaWorld’s financial results were higher than market expectations，It is expected that business will continue to recover in the future。

From a financial perspective，Both companies have relatively high long-term debt pressure，Six Flags debt exceeds $2 billion，SeaWorld under $1.5 billion。If Six Flags were to acquire SeaWorld，The merged company will face great debt pressure，The market may not be optimistic about such a transaction。In short，Six Flags appears to lack sufficient cash flow to complete this acquisition，Judging from the current stock price development trends of the two companies，It would be difficult to get SeaWorld shareholder approval for an all-stock deal。

The above is just an analysis of the possibility of Six Flags acquiring SeaWorld from the domestic market in the United States，However，Analysis from an international perspective，If more players participate，This deal may get more complicated。

Six Flags Entertainment takes over control of Zhonghong Zhuoye Ocean World?

SeaWorld and Six Flags both have international expansion plans。Because the American theme park market is relatively mature 188bet Online Sports Betting and Casino and even tends to be saturated，Building more theme parks is unlikely，Both companies hope to build more theme parks overseas through brand licensing。

Six Flags plans to open Six Flags Park in Dubai in 2019，Multiple Six Flags parks in the Chinese market are also under construction。SeaWorld has signed a contract with Abu Dhabi developer Miral to build a theme park not far from Warner Bros. Movie World；Last year，Zhonghong Zhuoye, a subsidiary of Zhonghong Co., Ltd., acquired its stake from Blackstone Group，Become a major shareholder of SeaWorld，And authorized to build the Ocean World brand park in China。

It’s worth noting，Entity companies related to Zhonghong include Zhonghong Shares and Zhonghong Zhuoye，Zhonghong Zhuoye holds a 21% stake in SeaWorld acquired from Blackstone Group。However，Zhonghong Shares has been plagued by negative events in recent months，Including huge liabilities、Financial fraud、M&A failed、Jiaduobao Oolong Incident, etc.，The company also previously sold the Ruyi Island project that was originally planned to build a Sea World brand attraction。

November 8，Shenzhen Stock Exchange made the decision to terminate the listing of Zhonghong Co., Ltd.。Zhonghong shares will enter the delisting period from November 16，The trading period is 30 trading days，The next trading day after the delisting consolidation period expires，Shenzhen Stock Exchange will delist the company’s shares。To this point，Zhonghong Co., Ltd. became the first company to be forced to terminate its listing due to its stock price being continuously lower than its face value。

There is speculation from foreign media，Six Flags may acquire only one of SeaWorld's parks，Or Six Flags’ goal is just to acquire Zhonghong’s 21% stake in SeaWorld，These are all possible trading behaviors。

Zhonghong was trading at approximately US$23 per share、Total 4.Acquisition of SeaWorld equity from Blackstone Group for US$2.9 billion。The current share price of SeaWorld is 24.5-25.Between $5，Slightly higher than the previous purchase price。From this perspective，Perhaps Six Flags buying the shares of Ocean World from Zhonghong is a good choice。Looking at Zhonghong’s current situation，The change of ownership in the future may be a foregone conclusion。Even if the controlling stake is sold，It’s hard to be optimistic about Zhonghong’s future development。

The performance and stock price of SeaWorld are currently on the rise，Six Flags’ influence and bargaining power have improved after the acquisition，Owner of two major international brands in future transactions。So，In a global sense，Six Flags’ acquisition of SeaWorld is a deal worth trying。

Also，Shanshui Wenyuan Group, which has cooperated with Six Flags to build 11 Six Flags parks in China, may not miss this opportunity。Shanshui Cultural Park may help Six Flags take over the 21% stake in Ocean World held by Zhonghong Zhuoye。If this transaction can be realized，It may have a significant impact on the market structure of China and international theme parks。