Activist investor Jana Partners is pressing theme park operator Six Flags Entertainment to explore a potential sale and overhaul its board leadership, according to a report by Reuters citing a letter sent to the company’s directors.
In the letter, Jana argued that pursuing strategic alternatives, including a sale, would be in shareholders’ best interests, citing existing buyer interest in the theme park operator. The hedge fund also called for the appointment of a new board chair, raising concerns about governance and decision-making at the company.
The demands come shortly after Six Flags appointed a new chief executive and amid broader efforts to reposition the business, including high-profile marketing initiatives. Jana, which disclosed a roughly 9% economic stake in the company last year, has previously advocated for operational improvements, enhanced marketing, and a better customer experience across the group’s parks.
Despite earlier optimism following Jana’s investment, Six Flags’ shares have remained under pressure, reflecting operational challenges and weaker-than-expected performance. The company recently missed earnings expectations and continues to face concerns about its growth trajectory, leaving it with a market valuation of around $1.7bn.
While Jana has expressed support for CEO John Reilly, it has been critical of the board, pointing to what it describes as inconsistent decision-making and lapses in communication with investors. The fund highlighted past instances where the company reaffirmed guidance only to revise it weeks later, as well as delays in announcing key leadership changes.
Six Flags has not publicly responded to the latest demands.
