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Snyder Makes Bid For Six Flags Inc.
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Snyder's attempt to take over Six Flags is the latest chapter in his on-again, off-again relationship with the theme park company, which has played out in a series of angry letters, meetings and more angry letters.
Last August, after building up an 8.8 percent stake, Snyder wrote to Six Flags management, pointedly conveying his opinion that the company was poorly run. He was joined by fellow shareholder Microsoft Chairman Bill Gates, who owns an 11.5 percent stake.
Snyder followed up with a meeting on Sept. 28, 2004, in which he offered detailed suggestions of how Six Flags managers could turn the company around, the SEC filing said.
But management turned a deaf ear to Snyder. "None of your suggestions . . . were such as to justify . . . placing you in the controlling positions you seek," wrote Michael E. Gellert, a Six Flags director, in a Sept. 30, 2004, letter to Snyder.
Snyder shot back a week later, saying he intended to protect his investment "through all available means."
Then suddenly, Snyder seemed to be about to give up and sell his shares. In a January letter to Gellert filed with the SEC, he wrote that investing in Six Flags was not a good idea "in light of what we believe will be a disappointing future."
Snyder, however, did not sell and instead, over the past month, bought about 2 million more Six Flags shares, at an average price of around $5.20.
Snyder, who made his fortune coming up with creative ways to sell advertising, is determined to bring the lucrative marketing and sponsorship initiatives he has created for the Redskins and FedEx Field to Six Flags, yesterday's filing indicates.
Snyder bought the Redskins, stadium and Redskins Park training facility from the estate of Jack Kent Cooke for $800 million in 1999; the team's value has been estimated at more than $1 billion, making the Redskins one of the most valuable franchises in sports.
Snyder has built the club's value by inventing new ways to make money. He added thousands of seats, vastly increased the number of sponsorships, introduced "tailgate clubs," and added luxury boxes and on-field seating, all of which have increased the team's cash flow to among the highest in sports. The stadium seats 91,665, the most in the National Football League.
Snyder wants to apply a similar game plan to Six Flags, creating partnerships with pizza, ice cream, cell phone and other brands that will increase amusement park revenue, according to the SEC filings.
