Bugs Bunny is shaping up as a linchpin in the Six Flags (PKS) turnaround.
The Oklahoma City, Okla., thrill ride company is in the midst of a transition that has some Wall Street wags speculating about a move into Hollywood. Big shareholder Dan Snyder, who also owns the National Football League's Washington Redskins, last month prevailed in a proxy battle. He celebrated by kicking out CEO
Now, new chief Mark Shapiro wants to remake the company's image, from an operator of roller coasters to a provider of family entertainment. For now, those plans rely in part on exploiting the Looney Tunes and DC Comics cartoon characters Six Flags has licensed from Time Warner's (TWX - Get Report) Warner Bros.
"We need to back focus off of roller-coasters and on to the basics of being a provider of great family experiences," says Shapiro, who noted in recent visits to Six Flags parks that Elmer Fudd-clad characters were sorely lacking. Shapiro, a well-respected former ESPN programming honcho, also wants to improve lighting and landscaping at the 30 parks and to bolster entertainment offerings.The stock has had a bumpy ride over the last two years but has recovered nicely of late, and is sitting atop a 52-week high. It rose 12 cents Wednesday to $9.15. Shapiro says the company is trying to focus on the overall experience for park-goers. At an average cost of $22 million each, Shapiro says, money-gobbling roller coasters take a huge bite out of capital spending and leave him with "nothing left to fix the parks." So what's the game plan? More Tweety, for one. Shapiro says Six Flags hopes to "recharge" its relationship with Warner Bros. through the Looney Tunes and DC Comics franchises.
Six Flags bounces