Six Flags Sale Could Set New Benchmark for Disney Park Assets

An activist investor has urged Six Flags (FUN) to hire an investment bank and explore a sale, citing the company's declining stock price. The demand comes from JANA Partners-led group that includes Travis Kelce, who built its economic stake last autumn and pressed for a sale earlier this year.

Six Flags' stock has plummeted 43% over the past year, with a current value of $12.31 per share. This decline raises concerns about the company's ability to sustain itself in the long term. The activist investor's push for a sale aims to create a benchmark for valuing Disney's (DIS) park assets.

Disney's Experiences segment delivered $3 billion in operating income last quarter, growing 20% year-over-year. However, its valuation is tied to the conglomerate as a whole, rather than being a standalone business. A sale of Six Flags could provide a comparable for Disney's parks, which could potentially impact the company's overall valuation.