By Annys Shin
Washington Post Staff Writer
Thursday, December 15, 2005
Mark Shapiro has been chief executive of Six Flags for a little over 24 hours, and already the ideas are flying. He's talking about collaborating with Microsoft on creating an Xbox "village." Maybe he'll ask "Nightmare on Elm Street" creator Wes Craven to design a haunted house for the chain's 29 theme parks.
Only a day earlier, Hollywood mogul Harvey Weinstein -- along with former vice presidential candidate Jack Kemp and big-time media consultant Michael Kassan -- joined the Six Flags board.
Shapiro and Redskins owner Daniel Snyder were voted on to the board on Dec. 1, after winning a three-month campaign for the support of Six Flags' shareholders. They had promised change if they succeeded in taking over the nation's second-largest theme park company. And change apparently is coming quickly.
Everything is up for review: The parks. Ad campaign star "Mr. Six." Even the sort of giant roller coasters Six Flags built its brand on.
And that's where the Xbox and Wes Craven come in.
"This industry relies too much on big rides. We have to diversify," Shapiro, who was recruited by Snyder to run Six Flags, said in an interview yesterday. "We have to focus on more concerts and more themed attractions."
Since launching his effort to gain control of Six Flags, Snyder has talked of perhaps using it to build an entertainment company. And Tuesday's board appointments lent further support to that ambition.
Harvey Weinstein and his brother Bob recently launched their own movie studio, the Weinstein Co., after breaking away from Walt Disney Co. last year.
Kassan, who described himself as "a big fan of Dan Snyder and an old friend," is a veteran media buyer and has previously bought advertising for Walt Disney Co. and for Six Flags.
Kemp now heads his own consulting firm in Washington and sits on several corporate boards.
The new board members bring relevant experience and, just as importantly, fat Rolodexes, which provided some inspiration for Shapiro. Craven, for example, directed all three "Scream" films, which were produced by Dimension Films, the offshoot of Bob and Harvey Weinstein's Miramax production company.
The Xbox is made by Microsoft, whose chairman, Bill Gates, is a major investor in Six Flags.
The Weinstein brothers, in particular, may restore a much-needed connection for Six Flags, which was once owned by Warner Bros. Ties to a major Hollywood movie studio would provide more opportunities for themed rides, which several industry experts said is critical for success.
"If Harvey Weinstein is going to be producing a family film, we will be knocking on the door to get Six Flags represented," Shapiro said.
One major impediment to executing these plans is the company's more than $2 billion in debt. Interest payments have been eating away at profit for several years.
Snyder, in a press release, acknowledged the "effect that such debt has on any transaction" and said reducing it would be a priority.
Theme park industry consultant Dennis Speigel estimated that if the company could get the debt down to around $1.6 billion, it would free up enough capital to work with and "things would start to look a lot better."
To raise some cash, Six Flags management is looking at selling some of its land. Last month, Snyder submitted a filing with the Securities and Exchange Commission that identified unused and underused land worth a combined total of at least $262.1 million, with land around the park in Largo valued at between $104.5 million to $118 million. For real estate advice, Snyder and Shapiro can turn to home builder Dwight C. Schar, who joined the board with them.
"It will be an uphill battle and a lot to do, but if it's well thought out, it's achievable," said Speigel.
"We want to restore family confidence in the brand," Shapiro said. "We want it to be less of a field trip and more of a destination."
Shapiro replaced longtime chief executive Kieran E. Burke, who Tuesday evening stepped down as a result of a "mutual decision" with the board of directors, the company said.
Shares of Six Flags closed at $7.20, up 5 cents.
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