SBD/Issue 52/Finance

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  • Daniel Snyder Claims To Have Votes To Oust Six Flags CEO

    Snyder To Become
    Six Flags Chair?
    Redskins Owner Daniel Snyder announced that he has “enough shareholder votes to remove” Six Flags Chair & CEO Kieran Burke, Six Flags CFO James Dannhauser and Allen & Co. Managing Dir Stanley Shuman from the company’s BOD, according to Barry Shlachter of the FT. WORTH STAR-TELEGRAM. Snyder claimed that 57% of the company’s stockholders “voted to oust” the execs, who would be replaced by Snyder, Red Zone CEO Mark Shapiro and NVR Inc. Chair Dwight Schar. Six Flags said that “no one would leave the board until the votes are verified by an outside firm.” Red Zone has filed a “summary finding in Delaware Chancery Court to seat its nominees and remove” Burke, Dannhauser and Shuman. Snyder said that with control of the company, he would “implement a new marketing strategy, sell off 3,500 acres of unused land and replace Burke” as CEO with Shapiro (STAR-TELEGRAM, 11/23). Snyder would become Six Flags Chair (AP, 11/23).

    THREE’S NO CROWD: In DC, Annys Shin notes even if Snyder is successful in securing the shareholders’ votes, he would land only three of the seven seats on the BOD, “not enough to force Burke out and vote in Shapiro.” Also, Six Flags managers in recent weeks “had urged shareholders to wait a few weeks longer before making up their minds about Snyder’s plan so they could compare his offer” with that of a prospective buyer. Snyder previously said that Red Zone “would not block a sale of the company if a promising offer came along.” However, in materials sent to shareholders, Snyder said that it “was not the right time to sell the company” (WASHINGTON POST, 11/23).

    PLANS FOR SIX FLAGS: The WALL STREET JOURNAL’s Dennis Berman reports under Snyder and Shapiro’s plan, Six Flags theme parks “would focus less on teenagers and more on families and younger children.” Snyder and Shapiro discussed parks where marketers “could get their products directly in front of consumers -– and pay Six Flags for the right to do so.” They also plan on “installing a set of children’s entertainment characters ... to better attract children to the parks” (WALL STREET JOURNAL, 11/23). In DC, Jen Haberkorn reports Red Zone, as Snyder did at FedEx Field, would offer “exclusive food rights to vendors” inside the parks, and would also look for credit card, cell phone and ATM companies (WASHINGTON TIMES, 11/23).

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