It was a wild week for investors in the amusement park industry. Cedar Fair (NYSE:FUN) moved higher on Wednesday after a Reuters report claiming that Six Flags Entertainment (NYSE:SIX) was offering a cash and stock deal to acquire the smaller regional amusement park chain. The gains were swiftly surrendered on Friday, after Reuters followed up to report that Cedar Fair had rebuffed the offer allegedly valued at $4 billion.
Consolidation in a fragmented industry makes sense, and it's easy to see why Six Flags would want the Cedar Fair collection of parks. It's also easy to see why Cedar Fair refused those advances according to Reuters' sources. Let's go over the reasons the perfect pairing on paper apparently failed in application.