Warner Brothers/Discovery says they are up for sale

[Mad Dog]

CNBC reports private sources say that Comcast and Netflix have 'expressed interest' in an acquisition of Warner/Discovery.

 

[Scott W.]

I was weirdly thinking about this last night and what it could mean for the parks.

It doesn't change anything with Potter, I don't know if DC is even an option with Six Flags and MSHI.

The only thing I think I'd be interested in, if it's even possible would be Looney Tunes. I think that would be a lot of fun. Replace Toon Lagoon with those characters and Cartoon World is back on the menu.

 

[GAcoaster]

Come on Comcast!

 

[Mad Dog]

I was weirdly thinking about this last night and what it could mean for the parks.

It doesn't change anything with Potter, I don't know if DC is even an option with Six Flags and MSHI.

The only thing I think I'd be interested in, if it's even possible would be Looney Tunes. I think that would be a lot of fun. Replace Toon Lagoon with those characters and Cartoon World is back on the menu.

The Cartoon World failed negotiations of the 90's would be a wild irony if Comcast would acquire Warner.

 

[Jerroddragon]

Universal would be insane if they had WB as well

Like they are already doing well movie wise and adding another 10 great films a year would be insane

I don't want these companies combining but also...whats the other option some Rich person or group buying it up?

 

[UniversalRBLX]

Corporate consolidation concerns aside, the parks business would thrive from a major WB IP injection. They have a few timeless IPs (Scooby Doo, DC, Looney, Flintstones) that are begging for a major domestic presence at the parks, and HHN will have it somewhat easier to acquire IPs (at least one hurdle is gone).

I could be wrong, but from my reading of the MCA/Marvel contract, there is no stipulation regarding competing super hero/comic IPs elsewhere at the resort? Most of the contract ties Marvel use to the "SECOND GATE", and they had DC-related merch at USF for years.

 

[AvoidTIMtation]

I absolutely *HATE* the fact that the Six Flags/DC contract doesn't end until like 2050

 

[GAcoaster]

I absolutely *HATE* the fact that the Six Flags/DC contract doesn't end until like 2050

Unless the “new” Six Flags is looking to cut costs (they are) and wants to shed the contract early…

 

[DK745]

I absolutely *HATE* the fact that the Six Flags/DC contract doesn't end until like 2050

Does anyone know about that darn Six Flags/DC contract? Is a buyout an option if it's not in perpetuity?

 

[rageofthegods]

Haha this sucks man.

Better Comcast than the personal friend of the president I guess.

 

[Dinoman96]

I was weirdly thinking about this last night and what it could mean for the parks.

It doesn't change anything with Potter, I don't know if DC is even an option with Six Flags and MSHI.

Dunno about the deal with Six Flags, but I'm already seeing people suggest that if Comcast buys DC, then they might finally give up the rights to Marvel in FL parks to Disney and instead revamp MSHI with DC characters, including that Moth guy over on WDWMagic.

Of course they're claiming that it isn't a hint, but...

 

[UniversalRBLX]

Does anyone know about that darn Six Flags/DC contract? Is a buyout an option if it's not in perpetuity?

It's not in perpetuity like the Marvel/IOA deal, so a buyout could happen.

It would be expensive though, as Six Flags would likely request a hefty fee for the loss of merchandise sales, potential attendance decline, and the cost of retheming/removing IPs earlier than expected. Prior to Covid, Six Flags was recording about $500-600M in Food and Merchandise revenue, but it's hard to differentiate between food and merch. Assuming 15% of that is merch-specific, and 50% of that is DC-related, SF probably generates $30-40M a year in DC merchandise revenue? That's a good amount of revenue SF would be missing each year. I wouldn't be surprised to a buyout deal with a similar cost to a major E-ticket attraction ($300M+), maybe more/less.

Universal would then have to pay for the land and attractions.

Unless the “new” Six Flags is looking to cut costs (they are) and wants to shed the contract early…

I think the revenue/brand recognition outweigh the cost of the licensing, unless they have internal data to suggest otherwise. Can't imagine that many people are travelling to their parks for themed rides.

However, if Universal is willing to give SF a good chunk of money, I'd imagine they take it. They're spending about $1B in new rides for the next two years and I'm sure that's what ultimately drives attendance, not necessarily DC-specific merch.

 

[Evan]

historic media companies are dying hey?

 

[Parkscope Joe]

No thank you.

 

[DrStarlander]

I wouldn't be surprised to a buyout deal with a similar cost to a major E-ticket attraction ($300M+), maybe more/less.

If Universal acquired WB, they wouldn't necessarily need Six Flags to stop using DC for them to also use the IP. They could, say, give SF $50 million for joint rights and proceed to spend a billion or whatever on designing and building a Gotham City (or whatever) and then co-use the IP for the remainder of the contract (15ish years). They could also throw in royalty-free use of some secondary/tertiary IPs they don't plan to use.

 

[Mad Dog]

Six Flags just brought in two new Investment Bankers to sit on their board. They added one a few months back. Those guys like to
disinvest and sell off stuff. This is a company that's going to undergo beaucoup changes in the next few years, and probably will be
greatly downsized.

 

[DrStarlander]

Six Flags just brought in two new Investment Bankers to sit on their board. They added one a few months back. Those guys like to
disinvest and sell off stuff. This is a company that's going to undergo beaucoup changes in the next few years, and probably will be
greatly downsized.

I suspect that the WB acquisition will be mostly about streaming consolidation and content libraries, and theme park considerations are not top of mind. However, there are some fun parlay opportunities.

For example (and, yes, this is highly unlikely, but again "fun") what if WB were to acquire Six Flags for, say, $3 billion, essentially buying back its DC rights, along with some interesting theme park properties (including Knott's and Six Flags in So. Cal.) and regional parks that could become Universal regional parks. That could add some sweetener/inducement for Comcast to get into the bidding (driving up the price, who knows, $5 billion, maybe more, if they get involved) making it a net gain for WB.

(Comcast could acquire SF on its own before closing a WB deal but if the WB deal falls apart they would lose the DC rights in 25 years.)