Six Flags-Cedar Fair merger to impact 4 California theme parks

The merger of Six Flags Entertainment and Cedar Fair is set to establish one of the largest theme park operators in North America.

Why it matters: The companies are seeking to join forces at a time when the theme park industry is still struggling to recover from the economic fallout of the pandemic.

Driving the news: The companies described the deal as a "merger of equals," giving the new entity — which will be named Six Flags — an enterprise value of $8 billion.

• Combined, they would have 27 amusement parks, 15 water parks and nine resorts in 17 states, Canada and Mexico.
• That includes four in California: Six Flags Magic Mountain in Valencia, Six Flags Discovery Kingdom in Vallejo, Knott's Berry Farm in Buena Park and the soon-to-sunset Great America in Santa Clara.

The big picture: "The theme-park industry is struggling to rebound from the pandemic, when many parks were closed or operated under restrictions," WSJ reported. "While demand in other hard-hit industries such as cruising has surged past pre-pandemic levels, attendance at U.S. theme parks hasn't yet gotten there."

• Six Flags shares are down more than 62% over the last five years, while Cedar Fair shares are down more than 30%.

• Their combined attendance over the last 12 months was 48 million.

What to watch: The deal will need to past muster with regulators, but the companies said they "have minimal market overlap."

Flashback: Cedar Fair announced last June that it had sold the land currently occupied by Great America, which it operates, to pay off existing debt amid lagging attendance.

• The park is expected to close permanently by 2033.