Snyder Would Add More DM to Six Flags Advertising

If Washington Redskins owner Daniel Snyder is successful in his hostile bid for control of Six Flags Inc., the ailing theme-park operator’s marketing department may be forced to lose the tuxedo-clad dancing octogenarian mascot in its television ads in favor of, among other things, more family oriented direct mail.

Snyder, who is Six Flags’ largest shareholder with 11.7% of the company, believes Six Flags’ parks are “skewed towards thrill rides catering to teenagers at the expense of families and young children,” his Washington, D.C.-based company, Red Zone LLC, said in a letter to Six Flags shareholders filed with the SEC.

If Red Zone gains control of Six Flags, it will work to rebrand the theme parks so they attract a more balanced audience of youth and families, and so that people from all demographics view the company’s image as “clean, safe, and fun,” Red Zone’s letter to shareholders said.

“To implement our strategy, we would employ smart, cost-effective targeted advertising (including direct mail) and focus on mothers (with young children) as well as youth,” the company said.

“Additionally, we believe that more co-branded integrated marketing and sponsorship opportunities as well as more co-op advertising with partners in areas such as, for example, action sports, athletes, video games, musicians, celebrities, and movie premiers could generate significant benefits to the company,” Red Zone said in its letter to shareholders.

Though the letter doesn’t specifically address Six Flags’ mascot, any significant rebranding effort would almost certainly involve a major overhaul of the company’s television advertising.

Snyder launched his hostile bid to take control of Six Flags last week

Six Flags, which operates 30 amusement parks in North America, posted a $177.3 million loss in 2004. Its stock price closed at $5.45 on August 16, down more than 75% from a five-year high of $23.25 in May 2001, Red Zone’s SEC filing said.

“In our view, over the last five years, the company’s stock has underperformed relative to its peers as well as the broader market,” the filing said.

However, Six Flags’ stock has risen steadily since Snyder’s offer of $6.50 a share was made public, and closed at $6.46 on Tuesday.

To revive the company, Snyder is proposing that Six Flags chairman and chief executive officer Kieran Burke, its chief financial officer James Dannhauser and director Stanley Shuman be ousted from Six Flags board and that outgoing ESPN executive Mark Shapiro be named chief executive and himself appointed chairman. He also wants a Washington area homebuilder, Dwight Schar, named to the board. Snyder must get 50% of the shareholders to sign off on his proposal to get himself, Shapiro and Schar placed on the board.

Snyder said he plans to buy only 34.9% of the company’s shares to avoid triggering a “poison pill” provision the company currently has in place to avoid takeover.

Six Flags said in a statement that its board of directors will “carefully consider and evaluate Red Zone’s filings and will communicate with Six Flags’ stockholders in due course.”