Expansion in the Middle East
On April 10, 2014, Six Flags Entertainment Corp. (SIX) announced that it’s expanding beyond America. The company entered into a strategic partnership with Meraas Leisure and Entertainment LLC to develop a Six Flags–branded theme park at Dubai in the United Arab Emirates. The project is planned to open in late 2017 and will be located within the multi-themed park project in Jebel Ali launched by Meraas.
Jim Reid-Anderson, chairman, president, and CEO (chief executive officer) of Six Flags, said, “The cornerstone of our international expansion strategy has always been finding the right partner in the right location and, with Meraas in Dubai, we have done exactly that. We are honored to be working with this world-class organization as the first significant strategic step taking the Six Flags brand to growing and successful markets outside North America.”
Reportedly, theme park operator SeaWorld Entertainment (SEAS) was also looking to expand its operations in the Middle East when its revenues fell by 11% year-over-year in the first quarter of 2014.
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Expansion in China
On June 23, 2014, Six Flags Entertainment Corp. (SIX) entered into a strategic partnership with Riverside Investment Group to build multiple Six Flags–branded theme parks in China over the next decade.
Chairman Li of Riverside Investment Group said, “We are honored to enter this strategic relationship with Six Flags and expand the entertainment offerings in China. We are confident this world-class brand and unique form of entertainment will attract millions of guests to our parks.”
It should be noted that these agreements do not require Six Flags to make any capital investments in the parks. Six Flags will receive fees over the design and development period as a result of exclusivity rights granted and the rights to use its brand. Six Flags would also receive an ongoing remuneration once the parks open to the public.