Six Flags Announces Decision Regarding Six Flags Over Texas Partnership Call Option

Key Terms

call option financial

A call option is a contract that gives its buyer the right, but not the obligation, to buy a specific number of shares at a predetermined price within a set time period. Think of it as a refundable reservation to buy an item later at today’s price: you pay a fee up front and can profit if the stock rises, while your downside is limited to that fee; investors use calls to gain leverage, speculate on upside, or hedge positions without owning the shares.

non‑controlling partner interests financial

Non-controlling partner interests are ownership stakes in a business or partnership that do not give the holder the power to direct operations or make final decisions. For investors this matters because such stakes still share in profits, losses and risks but offer limited influence over strategy, governance and future transactions, so their value depends more on financial performance and legal protections than on control of the company.

partnership agreement financial

A partnership agreement is a written contract that lays out how two or more parties will work together, splitting responsibilities, profits, losses and decision-making. Think of it as a detailed roadmap or house rulebook for a joint project; it matters to investors because the terms determine how much revenue and risk a company will take on, how quickly it can act, and whether the partnership could dilute control or boost growth potential.

capital allocation priorities financial

Capital allocation priorities are the order in which a company decides to use its financial resources, such as investing in new projects, paying dividends, reducing debt, or saving for future needs. They matter to investors because they influence a company's growth potential and financial stability, helping them understand how the business plans to grow and return value over time. Proper priorities can indicate a well-managed company focused on sustainable success.

intellectual property financial

Intellectual property are legal rights that protect creations of the mind—such as inventions, brand names, designs, software, or secret formulas—giving the owner control over who can use, copy or sell them. For investors, IP is like owning a blueprint or recipe: it can generate steady income through exclusive sales or licensing, boost a company’s competitive edge and valuation, and also create costs or risks if rights must be defended or challenged in court.

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Six Flags Entertainment Corporation (NYSE: FUN) (the “Company” or “Six Flags”), the largest regional amusement park operator in North America, today announced it will not exercise its contractual call option to acquire the remaining non‑controlling partner interests in Six Flags Over Texas, located in Arlington, Texas, as provided under the existing partnership agreement governing the park.

Under the terms of the agreement, Six Flags was required to notify the partnership no later than December 31, 2025, regarding its intent to exercise the option, which would have resulted in a payment due in January 2028. After careful consideration, the Company has determined it is currently not in its best interest to exercise the call option.

“After careful consideration of the terms of the partnership agreement and the strategic objectives of the Company, we have determined not to exercise the call option with respect to Six Flags Over Texas,” said John Reilly, president and CEO of Six Flags. “This was a difficult and deliberate decision. Six Flags Over Texas is a foundational park in our system and a prized asset within our portfolio. While the contractual terms do not currently align with our capital allocation priorities, we remain deeply committed to the long‑term success of the park and believe it has a bright future as part of the Six Flags portfolio.”

Reilly added, “We will maintain constructive discussions with our partners regarding our continued interest in Six Flags Over Texas. In the meantime, our focus remains on driving operational excellence in the park for the benefit of our guests and the Dallas-Fort Worth Metroplex.”

Six Flags will continue to operate and manage Six Flags Over Texas pursuant to the existing partnership agreement. The Company has continued to invest in the park through capital improvements, new attractions, and enhancements to the guest experience, underscoring its confidence in the park’s long‑term growth and strategic importance to the Six Flags portfolio.

The Company noted that this decision does not affect its ownership or operations of Six Flags Over Georgia, for which Six Flags exercised its call option in December 2024.

SIX FLAGS ENTERTAINMENT CORPORATION

Six Flags Entertainment Corporation (NYSE: FUN) is North America’s largest regional amusement-resort operator with 27 amusement parks, 15 water parks and nine resort properties across 16 states in the U.S., Canada, Mexico and Saudi Arabia. Focused on its purpose of making people happy, Six Flags provides fun, immersive and memorable experiences to millions of guests every year with world-class coasters, themed rides, thrilling water parks, resorts and a portfolio of beloved intellectual property such as Looney Tunes^®, DC Comics^® and PEANUTS^®.

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this news release that are not historical in nature are forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements as to our expectations, beliefs, goals and strategies regarding the future. Words such as “anticipate,” “believe,” “create,” “expect,” “future,” “guidance,” “intend,” “plan,” “potential,” “seek,” “synergies,” “target,” “objective,” “will,” “would,” similar expressions, and variations or negatives of these words identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These forward-looking statements may involve current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct, or that our growth and operational strategies will achieve the target results. Important risks and uncertainties that may cause such a difference and could adversely affect attendance at our parks, our future financial performance, and/or our growth strategies, and could cause actual results to differ materially from our expectations or otherwise to fluctuate or decrease, include, but are not limited to: failure to realize the anticipated benefits of the merger, including difficulty in integrating the businesses of legacy Six Flags and legacy Cedar Fair; failure to realize the expected amount and timing of cost savings and operating synergies related to the merger; adverse weather conditions; general economic, political and market conditions; the impacts of pandemics or other public health crises, including the effects of government responses on people and economies; competition for consumer leisure time and spending or other changes in consumer behavior or sentiment for discretionary spending; unanticipated construction delays or increases in construction or supply costs; changes in capital investment plans and projects; anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the Combined Company’s operations; legislative, regulatory and economic developments and changes in laws, regulations, and policies affecting the Combined Company; acts of terrorism or outbreak of war, hostilities, civil unrest, and other political or security disturbances; and other risks and uncertainties we discuss under the heading “Risk Factors” within our Annual Report on Form 10-K and in the other filings we make from time to time with the Securities and Exchange Commission. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this document and are based on information currently and reasonably known to us. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after publication of this news release.

This news release and prior releases are available under the News tab at https://investors.sixflags.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20260105256380/en/

Investor Contact: Michael Russell, 419.627.2233
Media Contact: Gary Rhodes, 704.249.6119

Source: Six Flags Entertainment Corporation