Pressure from Microsoft Chairman Bill Gates over a sagging financial outlook and news that Washington Redskins owner Daniel Snyder has bought a nearly 9 percent interest in Six Flags Inc. drove the amusement park company’s shares up more than 25 percent Tuesday.
In a Securities and Exchange Commission filing Tuesday by his Cascade Investment firm, Gates, who owns 11.5 percent of Six Flag’s stock, said he was “increasingly dissatisfied” with the company’s financial performance.
The filing says Gates plans to press company officials for answers on Six Flags’ decision-making process and finances, which include a stock price that has plunged in recent months. It also states that Gates may seek to have another person placed on Six Flags’ board of directors.
In a separate SEC filing Monday, Snyder reported that between Aug. 11 and Aug. 30, he bought 8.15 million shares of Six Flags for roughly $34.5 million through his investment vehicle Red Zone.
In the filing, Snyder said he believes that Six Flags shares are undervalued, and that company officials have not done enough to outpace competitors in the amusement park industry.
“The company’s management has failed to implement measures to increase revenues and decrease expenses, and its failure to do so has caused the company to be continuously outperformed by its peers,” the filing reads.
Snyder said he may seek a spot on the company’s board, and could push Six Flags to merge or sell part of its assets.
The Wall Street Journal, citing “people close” to Snyder, reported Tuesday that the Redskins owner wanted to revamp Six Flags marketing through techniques he used to make the Redskins one of the most valuable teams in professional sports.
Shares of the Oklahoma City-based Six Flags rose $1.10 to $5.56 each in early afternoon trading on the New York Stock Exchange.
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