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MylesG23

Why Did Paramount Sell?

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In 2004 Viacom split into two entities: Viacom and CBS corp, CBS had formerly been under one large viacom umbrella. The company of Paramount Parks based in Charlotte, North Carolina was placed under the CBS half with licenses and rights to paramount/viacom theming and entities. Fearful of the slow growth of amusement parks in the U.S. (slow growth as in compared to other countries success with amusement tourism) CBS did not see the Paramount Parks as a very profitbal asset and sought to sell the parks, this is why in the 2005 season you saw so many cut backs on operating hours, landscaping, theming, even employee name tags. CBS tried to scrimp and save as much as they could while attempting to sell the parks and eventually they did to Cedar Fair L.P. (Now turned Cedar Fair Entertainment Company) for a reported 1.2 Billion dollars. Paramount Parks under CBS corp. ceased to exist. However, Paramount Parks as a Viacom company is coming back but not in the U.S. Viacom has just announced they will launch a new chain of Paramount Parks throughout Asia due to Asias increasing growth in population and tourism and in light of Disney and Universal's recent success. Viacom claims to have plans for 3 overseas parks:

 

Their first one has been confirmed to be being built in South Korea:

http://www.boston.com/news/world/asia/arti...rea_theme_park/

 

They are also proposing to build one in Tiaijin China:

http://www.iht.com/articles/2006/04/26/business/viacom.php

 

And they have been working since 2004 to reach an agreement to build one in osaka Japan:

http://www3.paramountparks.com/news/detail.cfm?item_id=264

 

Its interesting Paramount Park's history with international theme parks. When they originally purchased the KECO properties they purchased them all except Australia's wonderland, keeping all their properties in North America. Then for a short while from 2002-2004 Paramount Parks managed and had some theming in a park called Tierra Mietica in Spain but eventually ended that contract stating they didnt want to expand overseas. THen they sell their North American properties and want to expan over seas. Just goes to show how the industry is growing faster in other areas.

 

So in short:

Paramount Parks was owned by Viacom 1993-2004

Paramount Parks was owned by CBS 2005-2006

Cedar Fair purchases Paramount Parks 2006-Present

Paramount Parks returns under Viacom with a new park - announced 2007

 

Viacom and CBS never really gave the parks the attention or budget they really needed to be competitve or comparable to places like Universal or Disney, they didnt like the idea of spending a lot now to hoepfully get a great product like disney does that yields a high return investment down the road. They were interested in the short term, not the long term hence why they are interested in building in the booming economies of Asia.

Edited by Dr. Steve Brule

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In 2004 Viacom split into two entities: Viacom and CBS corp, CBS had formerly been under one large viacom umbrella. The company of Paramount Parks based in Charlotte, North Carolina was placed under the CBS half with licenses and rights to paramount/viacom theming and entities. Fearful of the slow growth of amusement parks in the U.S. (slow growth as in compared to other countries success with amusement tourism) CBS did not see the Paramount Parks as a very profitbal asset and sought to sell the parks, this is why in the 2005 season you saw so many cut backs on operating hours, landscaping, theming, even employee name tags. CBS tried to scrimp and save as much as they could while attempting to sell the parks and eventually they did to Cedar Fair L.P. (Now turned Cedar Fair Entertainment Company) for a reported 1.2 Billion dollars. Paramount Parks under CBS corp. ceased to exist. However, Paramount Parks as a Viacom company is coming back but not in the U.S. Viacom has just announced they will launch a new chain of Paramount Parks throughout Asia due to Asias increasing growth in population and tourism and in light of Disney and Universal's recent success. Viacom claims to have plans for 3 overseas parks:

 

Their first one has been confirmed to be being built in South Korea:

http://www.boston.com/news/world/asia/arti...rea_theme_park/

 

They are also proposing to build one in Tiaijin China:

http://www.iht.com/articles/2006/04/26/business/viacom.php

 

And they have been working since 2004 to reach an agreement to build one in osaka Japan:

http://www3.paramountparks.com/news/detail.cfm?item_id=264

 

Its interesting Paramount Park's history with international theme parks. When they originally purchased the KECO properties they purchased them all except Australia's wonderland, keeping all their properties in North America. Then for a short while from 2002-2004 Paramount Parks managed and had some theming in a park called Tierra Mietica in Spain but eventually ended that contract stating they didnt want to expand overseas. THen they sell their North American properties and want to expan over seas. Just goes to show how the industry is growing faster in other areas.

 

So in short:

Paramount Parks was owned by Viacom 1993-2004

Paramount Parks was owned by CBS 2005-2006

Cedar Fair purchases Paramount Parks 2006-Present

Paramount Parks returns under Viacom with a new park - announced 2007

 

Viacom and CBS never really gave the parks the attention or budget they really needed to be competitve or comparable to places like Universal or Disney, they didnt like the idea of spending a lot now to hoepfully get a great product like disney does that yields a high return investment down the road. They were interested in the short term, not the long term hence why they are interested in building in the booming economies of Asia.

 

 

 

wow! Thanks for the info! :rolleyes: :rolleyes: :rolleyes: :rolleyes:

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I thought Viacom didn't take control of the Paramount Parks till 1994, as why in 1995 Nickelodeon made it way into PKI. Didn't Paramount Communications actually own the park for one full season before Viacom bought Paramount?

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I heard they dont say that anymore...as if they dont care..it's sad..I felt soo at home with paramount..I'm not good with changes :unsure:

Edited by MylesG23

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in the preparamount years, ki was owned and operated by people like at cedar fair whose heart and blood were in the amusement business. I am talking mainly about the taft family. ki was their baby and they nurtured the park. many of you were not born when ki existed in the preparamount years but it was really the continuation of old coney island. before 1972,coney island was the key amusement park in the midwest. its history is almost as old as cedar point. my grand parents and parents went to coney and i remember when my parents took me as a child to coney. because of flooding at old coney ki was built to continue the tradition of coney. unfortunately paramount did not nuture and care for ki like the taft family. it seemed like ki was just one of many holdings by a large corporation. i feel cedar far is operated by people whose heart and blood is in amusement parks,ie dick kinzel. dick kinzel has stated his fondness for ki. i believe he will bring ki back to its former glory in the taft years.

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Based on what I've read about Kings Island, it seems that it was under Carl Lindner's and American Financial's ownership that the park began to go downhill. That is at least my assumption.

 

Paramount didn't have any theme park experience but tried to learn along the way. I think they had the best intentions but those intentions didn't translate into the park so many have not grown too fond of.

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in the preparamount years, ki was owned and operated by people like at cedar fair whose heart and blood were in the amusement business. I am talking mainly about the taft family. ki was their baby and they nurtured the park. many of you were not born when ki existed in the preparamount years but it was really the continuation of old coney island. before 1972,coney island was the key amusement park in the midwest. its history is almost as old as cedar point. my grand parents and parents went to coney and i remember when my parents took me as a child to coney. because of flooding at old coney ki was built to continue the tradition of coney. unfortunately paramount did not nuture and care for ki like the taft family. it seemed like ki was just one of many holdings by a large corporation. i feel cedar far is operated by people whose heart and blood is in amusement parks,ie dick kinzel. dick kinzel has stated his fondness for ki. i believe he will bring ki back to its former glory in the taft years.

 

Cedar Fair's heart and blood are in Cedar Point, their passion does not flow chain wide. Sure, Cedar Point is a wonderful park/resort destination. But, the rest of their chain is neglected and doesn't have much to brag about. GL is a joke, Michigans Adventure is like the Hamilton County fair except it has a large wooden coaster, their only other reputable park is Knott's Berry Farm, and it was already quite wonderful before Cedar Fair took over and poured concrete everywhere and ripped out all of its beautiful landscaping. Like you, I do hope CF does a better job than Paramount and I think they will at KI becuase of KI's high yield of attendance and income however the rest of the chain will not receive the treatment and attention parks like KI, KBF, and CP receive. By the way, everytime you start a new sentence you are supposed to capitalize the first word.

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in the preparamount years, ki was owned and operated by people like at cedar fair whose heart and blood were in the amusement business. I am talking mainly about the taft family. ki was their baby and they nurtured the park. many of you were not born when ki existed in the preparamount years but it was really the continuation of old coney island. before 1972,coney island was the key amusement park in the midwest. its history is almost as old as cedar point. my grand parents and parents went to coney and i remember when my parents took me as a child to coney. because of flooding at old coney ki was built to continue the tradition of coney. unfortunately paramount did not nuture and care for ki like the taft family. it seemed like ki was just one of many holdings by a large corporation. i feel cedar far is operated by people whose heart and blood is in amusement parks,ie dick kinzel. dick kinzel has stated his fondness for ki. i believe he will bring ki back to its former glory in the taft years.

 

Cedar Fair's heart and blood are in Cedar Point, their passion does not flow chain wide. Sure, Cedar Point is a wonderful park/resort destination. But, the rest of their chain is neglected and doesn't have much to brag about. GL is a joke, Michigans Adventure is like the Hamilton County fair except it has a large wooden coaster, their only other reputable park is Knott's Berry Farm, and it was already quite wonderful before Cedar Fair took over and poured concrete everywhere and ripped out all of its beautiful landscaping. Like you, I do hope CF does a better job than Paramount and I think they will at KI becuase of KI's high yield of attendance and income however the rest of the chain will not receive the treatment and attention parks like KI, KBF, and CP receive. By the way, everytime you start a new sentence you are supposed to capitalize the first word.

it is highly unlikely that cedar fair will ignore ki and other paramount parks after spending 1.5 billion for the parks. if they do they will have to answer to the stock holders. dick kinzel and the rest of the cedar fair folks are business people and it is ludicrous to think they will let a 1.5 billion dollar investment go down the tubes by ignoring ki and the rest of the parks.

by the way as to caps, i am used to e-mail protocol at my place of business where we use all small characters.

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First, it was $1.24 billion, not $1.5 billion. Small difference? $260 million is a LOT of change!

 

And second, common courtesy dictates that when in Rome, you do as the Romans do. It is not that difficult to punctuate. Have some consideration for others.

 

It will get you far in this world.

 

Not having any shows no class whatsoever.

 

--The Interpreter, who is glad he doesn't work where you do....

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Having seen Kinzel's interview with the Cleveland Plain Dealer, this company would be totally dumb to just invest in Cedar Point. CP will always be one of their, if not their #1, top park, simply because of its resort situation with many hotel rooms. However, Kinzel stated that Detroit has been going down the crapper economically with serious job cuts in the automotive industry, and that Cleveland will become a bigger market for CP than Detroit. That's why Cedar Fair is and will be putting more into other parks, especially the former Paramount Parks like Kings Island.

 

The decision to move X-Flight to KI was a no-brainer - Geauga Lake was unsustainable at its early-mid 2000s size, and the fact that Kings Island brings in much bigger crowds seeking more. Give GL a few years - it may have a few more big rides taken out, but to the point they will once again be profitable. Michigan's Adventure? Water issues have limited its growth, but it's a park that is slowly getting better.

 

 

As to why Paramount sold, they simply thought they could just continue to squeeze out more and more money year after year in profits, later realizing it wasn't showing the growth they wanted to see.

Edited by CoastersNSich

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