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Six Flags and Cedar Fair Merge, DOJ Greenlights Deal

 |  June 26, 2024

The Department of Justice (DOJ) has granted Arlington-based Six Flags the green light to finalize its merger with Cedar Fair, the owner of Schlitterbahn Waterpark and Resort. This marks the removal of the last significant hurdle for the two amusement park giants, setting them on track to meet their target date of July 1. The new entity will start trading on the New York Stock Exchange under Cedar Fair’s ticker, FUN, on July 2.

The merger will bring about several significant changes for both companies. Six Flags will relocate its corporate headquarters from Arlington to Charlotte, North Carolina, and the new company will be primarily managed by Cedar Fair executives. Four out of the five members on the Board of Directors will be from Cedar Fair, with the exception of Gary Mick, Six Flags’ CFO and Executive Vice President. Selim Bassoul, President and CEO of Six Flags, will assume the role of Executive Chairman of the new company’s Board of Directors.

“As our collective team pauses to recognize this important milestone, together we are eager to embark on the next chapter of our journey to offer millions of guests across North America unparalleled, family-focused entertainment full of fun, thrills, and lifetime memories,” Bassoul stated in a press release.

Read more: Six Flags and Cedar Fair to Finalize $8 Billion Merger

Cedar Fair declined to comment further when contacted by The Dallas Morning News.

The combined entity will face stiff competition from industry heavyweights like Walt Disney World and Universal Studios. Notably, Universal Studios is set to open a $150 million children’s themed resort in San Francisco by 2026.

However, the merger of Six Flags and Cedar Fair, combining their 42 parks and nine resorts across 17 states, positions the new company to expand its customer base significantly. Richard Zimmerman, currently the President and CEO of Cedar Fair and set to lead the new company in the same capacity, expressed optimism about the future.

“With an anticipated pro-forma enterprise value of approximately $8 billion, the combined company is well-positioned to drive future growth,” Zimmerman said. “Our enhanced financial flexibility will enable us to invest in new rides, attractions, food and beverage options, and state-of-the-art consumer technologies, ensuring continuous improvement and innovation, and that each park visit is more exciting and memorable than the last.”

Source: Dallas News

Uber and Lyft Face FTC Probe Over Alleged Collusion in NYC Pay Deal Uber and Lyft Face FTC Probe Over Collusion in NYC Pay Deal

Uber and Lyft Face FTC Probe Over Alleged Collusion in NYC Pay Deal

 |  January 30, 2025

The U.S. Federal Trade Commission (FTC) has launched an investigation into whether Uber Technologies Inc. and Lyft Inc. illegally coordinated to limit driver pay in New York City, according to Bloomberg. The inquiry comes in response to an agreement the companies made with city officials in July 2024 regarding driver compensation.

FTC Issues Information Demands

Per Bloomberg, the FTC sent civil investigative demands—comparable to subpoenas—to both Uber and Lyft in the closing days of the Biden administration. These demands require the companies to submit information within 30 days about the specifics of their agreement with New York City officials on driver pay.

Uber spokesperson Josh Gold confirmed that the company received the demand from the FTC on January 21. The request was signed by former FTC Chair Lina Khan before she stepped down at the end of the Biden administration. Gold stated in an email that Uber believes its actions complied with New York City regulations and that the company would cooperate with FTC staff. Similarly, Lyft spokesperson CJ Macklin acknowledged receipt of the FTC’s request, emphasizing that the company takes antitrust laws seriously and intends to work with the agency on the matter.

Details of the Agreement and Potential Concerns

According to Bloomberg, the agreement between Uber, Lyft, and New York City officials aimed to address ride-share lockouts that had led to lower driver earnings. However, Uber’s spokesperson denied any direct deal with Lyft, asserting that the company did not conspire to restrict driver pay. Despite this, a press release from the New York City mayor’s office at the time described the situation as an “agreement” with both ride-share companies.

Related: Supreme Court Rejects Uber and Lyft’s Appeal in California Gig Worker Suits

The FTC’s concern, per Bloomberg, is whether the agreement allowed Uber and Lyft—normally direct competitors—to coordinate on driver hiring and wages, potentially violating antitrust laws. While New York City officials are not under investigation, the FTC is examining the extent of their involvement in shaping the deal and the legal framework under which it was established. The agency’s staff memo noted that the city’s role could provide the companies with some legal defense, but further investigation is required.

Next Steps in the Investigation

The future of the probe now rests with FTC Chair Andrew Ferguson, who was appointed by former President Donald Trump. According to Bloomberg, Ferguson has the authority to continue the investigation, slow its progress, or halt it entirely.

As part of the inquiry, the FTC is seeking communications between Uber and Lyft, as well as interactions with New York City officials, including the mayor’s office and the Taxi and Limousine Commission. The agency is also requesting a copy of the agreement itself, according to documents reviewed by Bloomberg.

Source: Bloomberg