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http://www.washingtonpost.com/wp-dyn/content/article/2005/08/17/AR2005081702065.html

Snyder Makes Bid For Six Flags Inc.

Redskins Owner Offers $6.50 a Share

By Annys Shin and Thomas Heath

Washington Post Staff Writers

Thursday, August 18, 2005; D01

Redskins owner Daniel Snyder yesterday launched a bid to take control of struggling theme park company Six Flags Inc. and wants to see himself, local home builder Dwight C. Schar and outgoing ESPN executive Mark Shapiro installed in top positions, according to documents filed with the Securities and Exchange Commission.

Snyder, who has complained about the management of Six Flags since he began investing in the company last year, said he would offer $6.50 per share of Six Flags stock -- more than yesterday's closing price of $5.49 -- if shareholders consented via proxy to his proposal to oust the current management and install his own team.

Six Flags, which owns 30 amusement parks in North America, posted a $177.3 million loss from continuing operations in 2004, and its stock price declined from more than $23 in May 2001 to a low of $3.49 last August -- when Snyder started investing.

Saying his management could revive the company, Snyder said in yesterday's SEC filing that he wants to be made chairman and that he wants Shapiro appointed as chief executive and Schar appointed to the board.

"The current Board and management have not only ignored what we believe are constructive suggestions, but have also failed, in our view, to implement any alternative strategy," Snyder said in SEC documents submitted under the name of Red Zone LLC, the company through which he holds almost 11 million shares of Six Flags stock.

Shapiro, a well-regarded executive at ESPN, announced yesterday that he is leaving the network Oct. 1 to become chief executive of Snyder's Red Zone company, ESPN said.

Schar is a part owner of the Redskins and chairman of McLean-based NVR Inc., the home builder whose high-flying stock has made him one of the region's wealthiest men.

Snyder and Shapiro did not return several phone calls yesterday. Schar referred calls to Snyder.

In asking Six Flags shareholders to sell to him and to pressure their board to follow his plan, Snyder acknowledged the potential pitfalls of a battle by proxy. The company, for example, has a "poison pill" provision in place to prevent a takeover, and Snyder consequently said that for now he would buy stock equivalent to only 34.9 percent of the company's shares to avoid triggering it. He owns about 11.7 percent of the shares.

He also must get at least 50 percent of the company's shareholders to sign off on the proposal to elect him, Shapiro and Schar to the board -- a step that would pave the way for them to lift the poison pill rules and gain formal control of the company.

Six Flags, in a statement, reminded stockholders that they "need take no action" in response to Snyder's proposal.

"The board of directors of Six Flags will carefully consider and evaluate Red Zone's filings and will communicate with Six Flags' stockholders in due course," the company said.

Snyder's attempt to take over Six Flags is the latest chapter in his on-again, off-again relationship with the theme park company, a drama that has played out in a series of angry letters, meetings and more angry letters.

Last August, after building up an 8.8 percent stake, Snyder fired off a missive to Six Flags management, pointedly conveying his opinion that the company was poorly run. He was joined by fellow shareholder Microsoft Chairman Bill Gates, who owns an 11.5 percent stake.

Snyder followed up with a meeting on Sept. 28, 2004, in which he offered detailed suggestions of how Six Flags managers could turn the company around, the SEC filing said.

But management turned a deaf ear to Snyder. "None of your suggestions . . . were such as to justify . . . placing you in the controlling positions you seek," wrote Michael E. Gellert, a Six Flags director, in a Sept. 30, 2004, letter to Snyder.

Snyder shot back a week later, saying he intended to protect his investment "through all available means."

Then suddenly, Snyder seemed to be about to give up and sell his shares. In a January letter to Gellert filed with the SEC, he wrote that investing in Six Flags was not a good idea "in light of what we believe will be a disappointing future."

Snyder, however, did not sell and instead, over the past month, bought about 2 million more Six Flags shares, at an average price of around $5.20.

Snyder, who made his fortune coming up with creative ways to sell advertising, is determined to bring the lucrative marketing and sponsorship initiatives he has created for the Redskins and FedEx Field to Six Flags, yesterday's filing indicates.

Snyder bought the Redskins, stadium and Redskins Park training facility from the estate of Jack Kent Cooke for $800 million in 1999; the team's value has been estimated at more than $1 billion, making the Redskins one of the most valuable franchises in all of sports.

Snyder has built the club's value by inventing new ways to make money. He added thousands of seats, vastly increased the number of sponsorships, introduced "tailgate clubs," and added new luxury boxes and on-field seating, all of which have increased the team's cash flow to among the highest in sports. The stadium seats 91,665, the most in the National Football League.

Snyder wants to apply a similar game plan to Six Flags, creating partnerships with pizza, ice cream, cell phone and other brands that will increase amusement park revenue, according to the SEC filings.

© 2005 The Washington Post Company

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Dan Snyder has made an offer of 6.5 dollars per share to purchase Six Flags. The Skins will be the first team to have a Roller Coaster going around the concourse and across the field to help people get around the stadium quicker.

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You know, with his background in communications, I'm really surprised that Snyder hasn't attempted to purchase some kind of media outlet, i.e. cable TV station.

similar to what Ted Turner did... owning a pro sports team (braves) and a network (tbs) to show the games on / market his product.

You know, vertical integration and all. :)

I know he wouldn't be able to show reg season games, but there would be plenty of marketing i.e. post game shows, preseason, draft coverage, etc. etc.

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Who said about the tv, If you didnt notice on CBS, during the preseason game, they werent CBS crew they were Redskins.com TV, so he must have sdome deal with cbs. Also for 6 flags if he wanted to bring some people in, just bring the team for practice in the wave pool, Nah he could make it if you uy normal price to come in etc you can get free autographs from hall of famers and current players and stuff. Itd bring alot of people in

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August 12, 2005

Report: Snyder invites Shapiro to Six Flags

Daniel Snyder has offered ABC Sports/ESPN titan Mark Shapiro millions of dollars to leave the networks and help gain control of Six Flags the New York Post reported, citing network executives.

Snyder, a minority shareholder in Six Flags who also owns the NFL's Washington Redskins, has been dissatisfied with the amusement park operator's performance (AB, 8-10).

Snyder's plan apparently is to gain control of Six Flags and start a production company, with Shapiro overseeing the transition into a "mini-Disney" venture, according to the Post.

"It is not a Steve Spurrier deal," a source told the newspaper, referring to Snyder's five-year, $25 million contract that enticed Spurrier to leave the college ranks to join the Redskins as their coach a few years ago. "But it is millions and millions of dollars."

Shapiro, who started at ESPN in 1993 as a production assistant, sprinted through the corporate ranks at parent Disney to become the second-highest-ranking sports television executive at the company.

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Originally posted by redskins4life234

Who said about the tv, If you didnt notice on CBS, during the preseason game, they werent CBS crew they were Redskins.com TV, so he must have sdome deal with cbs. Also for 6 flags if he wanted to bring some people in, just bring the team for practice in the wave pool, Nah he could make it if you uy normal price to come in etc you can get free autographs from hall of famers and current players and stuff. Itd bring alot of people in

I believe redskins.com tv is comcast.

If he wanted to buy an amuzment park he should have bought Kings Dominion :cheers:

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Originally posted by richard saunders

August 12, 2005

Report: Snyder invites Shapiro to Six Flags

"It is not a Steve Spurrier deal, but it is millions and millions of dollars."

Man, I have got to come up with an excuse for Snyder to throw me a couple million -- that man has more money than he knows what to do with!

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http://www.z104radio.com/?nid=30&sid=83885

In a move that would have a huge impact on the television industry, ABC Sports/ESPN big Mark Shapiro may leave the networks to work for Daniel Snyder, according to network executives.

Snyder, who is best known for owning the Washington Redskins, has reportedly been a dissatisfied minority shareholder of amusement park operator Six Flags Inc.

Snyder's plan apparently is to gain control of Six Flags and start a production company, with Shapiro overseeing the transition into a "mini-Disney" venture.

Snyder is enticing Shapiro with a multimillion-dollar offer. "It is not a Steve Spurrier deal," said a source, referring to Snyder's five-year, $25 million contract that enticed Spurrier to leave the college ranks to join the Redskins as their coach a few years ago. "But it is millions and millions of dollars."

Shapiro declined an interview request.

"We don't comment on employee personnel matters," ESPN Senior Vice President Chris LaPlaca said.

Recently, Shapiro's name popped up among the potential candidates to run NBC's news division. NBC is looking for a news czar to oversee its NBC News, MSNBC and CNBC operations.

Shapiro, 35, has had an incredible run at Disney, ESPN's parent company, where he sprinted through the corporate ranks to become the second-highest-ranking sports television executive at the company.

In 1993, he started at ESPN as a production assistant, an entry-level position. Eight years later, he was ESPN's executive vice president of programming and production.

Just recently, he added ABC Sports to his responsibilities.

Shapiro, known for his innovative thinking, has extended ESPN's brand by adding original TV shows and movies.

He also has handled much of ESPN's negotiations with the major sports leagues. This spring, he helped secure "Monday Night Football" for ESPN in an $8.8 billion deal.

Young and successful, Shapiro is also brash, which has rubbed rival executives the wrong way. He clashed with the NFL over "Playmakers," a football-based drama on a fictional team that the NFL felt made the league look bad. Ultimately, after one season, ESPN dropped the show.

If Shapiro were to leave, it could have an impact on whether ESPN matches Comcast's reported $100 million-plus offer to broadcast the National Hockey League.

Shapiro has been a driving force in ESPN's rhetoric on whether it should keep the games.

Recently, Shapiro has had heated negotiations about extending ESPN's deal with Major League Baseball. with Rich Wilner

Copyright 2004 NYP Holdings, Inc. All rights reserved.

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http://www.washingtonpost.com/wp-dyn/content/article/2005/08/17/AR2005081702065.html

Snyder Makes Bid For Six Flags Inc.

Redskins Owner Offers $6.50 a Share

By Annys Shin and Thomas Heath

Washington Post Staff Writers

Thursday, August 18, 2005; Page D01

Redskins owner Daniel Snyder yesterday launched a bid to take control of struggling theme park company Six Flags Inc. and wants himself, local home builder Dwight C. Schar and outgoing ESPN executive Mark Shapiro installed in top positions, according to documents filed with the Securities and Exchange Commission.

Snyder, who has complained about the management of Six Flags since he began investing in the company last year, said he would offer $6.50 a share of Six Flags stock -- more than yesterday's closing price of $5.49 -- if shareholders consented via proxy to his proposal to oust the current management and install his own team.

Redskins owner Daniel Snyder teamed up with a local home builder and outgoing ESPN executive in his bid. (By Susan Walsh -- Associated Press)

Six Flags, which owns 30 amusement parks in North America, posted a $177.3 million loss from continuing operations in 2004, and its stock price declined from more than $23 in May 2001 to a low of $3.49 last August -- when Snyder started investing.

Saying his management could revive the company, Snyder said in yesterday's SEC filing that he wants to be made chairman and that he wants Shapiro appointed as chief executive and Schar appointed to the board.

"The current Board and management have not only ignored what we believe are constructive suggestions, but have also failed, in our view, to implement any alternative strategy," Snyder said in SEC documents submitted under the name of Red Zone LLC, the company through which he holds almost 11 million shares of Six Flags stock.

Shapiro, a well-regarded executive at ESPN, announced yesterday that he is leaving the network Oct. 1 to become chief executive of Red Zone, ESPN said.

Schar is a part owner of the Redskins and chairman of McLean-based NVR Inc., the home builder whose high-flying stock has made him one of the region's wealthiest people.

Snyder and Shapiro did not return several phone calls yesterday. Schar referred calls to Snyder.

In asking Six Flags shareholders to sell to him and to pressure the board to follow his plan, Snyder acknowledged the potential pitfalls of a battle by proxy. The company, for example, has a "poison pill" provision in place to prevent a takeover, and Snyder consequently said that for now he would buy stock equivalent to only 34.9 percent of the company's shares to avoid triggering it. He owns about 11.7 percent of the shares.

He also must get at least 50 percent of the company's shareholders to sign off on the proposal to elect him, Shapiro and Schar to the board -- a step that would allow them to lift the poison pill rules and gain control of the company.

Six Flags, in a written statement, reminded stockholders that they "need take no action" in response to Snyder's proposal.

"The board of directors of Six Flags will carefully consider and evaluate Red Zone's filings and will communicate with Six Flags' stockholders in due course," the company said.

Snyder's attempt to take over Six Flags is the latest chapter in his on-again, off-again relationship with the theme park company, which has played out in a series of angry letters, meetings and more angry letters.

Last August, after building up an 8.8 percent stake, Snyder wrote to Six Flags management, pointedly conveying his opinion that the company was poorly run. He was joined by fellow shareholder Microsoft Chairman Bill Gates, who owns an 11.5 percent stake.

Redskins owner Daniel Snyder teamed up with a local home builder and outgoing ESPN executive in his bid. (By Susan Walsh -- Associated Press)

Snyder followed up with a meeting on Sept. 28, 2004, in which he offered detailed suggestions of how Six Flags managers could turn the company around, the SEC filing said.

But management turned a deaf ear to Snyder. "None of your suggestions . . . were such as to justify . . . placing you in the controlling positions you seek," wrote Michael E. Gellert, a Six Flags director, in a Sept. 30, 2004, letter to Snyder.

Snyder shot back a week later, saying he intended to protect his investment "through all available means."

Then suddenly, Snyder seemed to be about to give up and sell his shares. In a January letter to Gellert filed with the SEC, he wrote that investing in Six Flags was not a good idea "in light of what we believe will be a disappointing future."

Snyder, however, did not sell and instead, over the past month, bought about 2 million more Six Flags shares, at an average price of around $5.20.

Snyder, who made his fortune coming up with creative ways to sell advertising, is determined to bring the lucrative marketing and sponsorship initiatives he has created for the Redskins and FedEx Field to Six Flags, yesterday's filing indicates.

Snyder bought the Redskins, stadium and Redskins Park training facility from the estate of Jack Kent Cooke for $800 million in 1999; the team's value has been estimated at more than $1 billion, making the Redskins one of the most valuable franchises in sports.

Snyder has built the club's value by inventing new ways to make money. He added thousands of seats, vastly increased the number of sponsorships, introduced "tailgate clubs," and added luxury boxes and on-field seating, all of which have increased the team's cash flow to among the highest in sports. The stadium seats 91,665, the most in the National Football League.

Snyder wants to apply a similar game plan to Six Flags, creating partnerships with pizza, ice cream, cell phone and other brands that will increase amusement park revenue, according to the SEC filings.

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