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Jana Partners Urges Six Flags to Explore Sale, Replace Board Chair

The activist cites board dysfunction and presses for talks with interested buyers after weak results left the company near a $1.7 billion valuation.

Overview

  • In a letter reviewed by Reuters, Jana Partners asked Six Flags to evaluate a sale and to immediately install a new chair of the board.
  • The firm told directors to engage with "known buyer interest" and alleged an "alarming pattern" of board dysfunction, pointing to a delayed CEO announcement and a swift reversal on financial guidance.
  • Jana reiterated support for CEO John Reilly, while the company has not issued a public response to the letter.
  • Six Flags shares surged when Jana disclosed a roughly 9% stake last fall but later fell on an earnings miss and performance concerns, closing Monday at $16.39 for a market value of about $1.7 billion.
  • The pressure adds to recent moves and scrutiny, including Marilyn Spiegel’s appointment as chair in January, a Sachem Head-backed director joining the board, the planned sale of six U.S. parks to Enchanted Parks, and the naming of Travis Kelce as brand ambassador last week.