NFL superstar Travis Kelce is joining forces with an activist investor to shake up theme park brand Six Flags.
Jana Partners, the New York hedge fund behind the move, announced it and Kelce, along with other investors, took a 9% stake in the formerly Arlington-based company Tuesday.
The stake is worth about $200 million, and Jana is seeking improvements in marketing and customer experience. According to a report from The Wall Street Journal, the firm is also considering a “refresh” to leadership and a potential sale in order to boost the company’s share price.
“We look forward to working with the Six Flags board and management to unlock shareholder value for the benefit of all stakeholders,” said Jana managing partner and portfolio manager Scott Ostfeld in a release.
The Julians perform in front of the Silver Star Carousel at Six Flags Over Texas on, Saturday, March 9, 2024, in Arlington.
Shafkat Anowar / Staff Photographer
After a tough start to the year marred by weather concerns and a decline in attendance, Six Flags had a strong summer, rebounding to post a year-over-year growth in attendance in the nine weeks ended Aug. 31. However, its stock price has steadily dropped all year; after opening the year just under $50 per share, shares of Six Flags traded at about $21 on Monday.
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Last year, Six Flags, behind the eponymous theme parks in Texas and beyond, announced it would merge with Cedar Fair, responsible for parks like Ohio’s Cedar Point and Virginia’s King’s Dominion.
Under the Six Flags banner, the joined company, now based in Charlotte, N.C., saw its share price rise in the wake of the merger. The price rose again at the end of the year as the company announced an ambitious $1 billion spending plan, with improvements to parks that include the recently announced record-breaking dive coaster at Arlington’s Six Flags Over Texas.
A photo collage of Kansas City Chiefs tight end and podcaster Travis Kelce, who has joined the activist investor firm Jana Partners as it attempts to push for changes at Six Flags.
Hand-out / JANA Partners
Six Flags’ stock price jumped nearly 20% in less than an hour after The WSJ published its report, indicating an appetite among investors for change at the company.
Kelce, recently engaged to billionaire songstress Taylor Swift, is nearing NFL retirement and has diversified his business interests as of late, inking a $100 million deal with his brother Jason Kelce for their podcast “New Heights” and launching a clothing brand that collaborated with American Eagle this year. He grew up in Ohio, near Cedar Point, now one of Six Flags’ crown jewel parks.
“I am a lifelong Six Flags fan and grew up going to these parks with my family and friends,” Kelce said in the release. “The chance to help make Six Flags special for the next generation is one I couldn’t pass up.”
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Also included amongst investors are Gap CEO Glenn Murphy and Reddit chair Dave Habiger, who could be tapped for board seats, according to The WSJ, while Kelce would not be.
Jana’s website says the firm has 20+ years of experience in shareholder activism. It cites operations, capital allocation, corporate transactions, and management and governance as some of its “value creation strategies.” It has recently taken stakes in Freshpet and contact lens manufacturer CooperVision.
Jana joins a crowded activist investor lineup at Six Flags, with Sachem Head Capital management getting a board seat earlier this month and Land&Buildings pushing last month for real estate-related changes.
