Business
Struggling Six Flags names new CEO. What does that mean for Knott’s and Magic Mountain?
Struggling with a plummeting stock price and a decline in revenues, Six Flags Entertainment Corp. named a new CEO Monday, weeks after company officials suggested they would sell more underperforming theme parks.
Six Flags announced John Reilly, a veteran theme park operator, as its new president and CEO. He had served as an interim CEO and chief operating officer at SeaWorld Parks and Entertainment in the past.
Reilly is taking the reins of the struggling Charlotte, N.C.-based company that operates Knott’s Berry Farm in Buena Park and Six Flags Magic Mountain in Valencia.
“He’s got his work cut out for him,” said Martin Lewison, associate professor of business management for Farmingdale State College in New York, who is also a Six Flags shareholder.
Since its merger with Cedar Fair Entertainment Company last year, Six Flags has upset some parkgoers with its cost-cutting efforts, including moving to a regional management model where park presidents at Knott’s Berry Farm and Magic Mountain were laid off. At some parks, live entertainment was reduced or mostly canceled, and some seasonal events did not return this year, such as WinterFest and Tricks and Treats at California’s Great America in Santa Clara.
Lewison said his own experience has been spotty at Six Flags parks, and two issues the company will need to address are how it wants to brand itself, and whether it wants its theme parks to be family-oriented or thrill-oriented.
“The company is just sort of a mishmash of a brand right now,” Lewison said.
While the holidays can be a big driver of traffic to Southern California theme parks like Disneyland, Six Flags’ regional parks have experienced some challenges, Lewison said.
At Six Flags, revenues and earnings were down in the third quarter compared to the same period last year, and there were fewer visitors in October compared to the same month in 2024. Executives earlier this month suggested they’re taking a stronger look at closing and selling off more of its underperforming theme parks.
In an earnings call earlier this month, Brian Witherow, chief financial officer for Six Flags, said certain parks that represent 70% of the company’s earnings are outperforming, while its other parks are struggling.
Witherow said the company had invested more money in maintenance to improve the guest experience at the underperforming parks, “but did not yet achieve the commensurate uplift in profits we were targeting.”
In a pair of examples, Witherow cited a “historically well-maintained” theme park “with a loyal customer base,” where the company was able to “minimize costs without impacting consumer demand or the guest experience,” and earnings grew 14%. Then, he cited an underperforming park, where, despite significant spending to address deferred investment needs, earnings fell significantly.
“Going forward, we intend to be more nimble and strategic in allocating investment dollars, focusing only on our highest potential underperforming parks and the strongest opportunities to deliver near-term returns,” Witherow said. He declined to list which parks were underperforming.
Witherow said it’s a priority for Six Flags to narrow its focus “and shrink our capital needs.”
“We’re going to look at the parks where our returns are the greatest, where the opportunities for growth are the highest, and we’re going to focus on those parks. The other parks we’ll look to monetize and use those proceeds to reduce debt,” Witherow said.
In the third quarter, Six Flags’ underperforming parks saw attendance decline 5%, Witherow said.
The company this month permanently shuttered its Six Flags America theme park and Hurricane Harbor water park in Bowie, Md., and will put up the land for sale. In Northern California, California’s Great America is set to close in the coming years, with its final season either in 2027 or in 2032, depending on whether the company exercises an option to extend its lease by an additional five years.
Could Six Flags be considering selling either of its parks in Southern California? Not at this time, Witherow suggested.
Some of Six Flags’ parks that have high property values are in Southern California, as well as Toronto, but those are parks that “are critical to the long-term growth of the business,” Witherow said. A sale of those properties, “I think from that perspective, would not be something, at least where we sit today, that we would be interested in pursuing.”
Reilly succeeds Richard A. Zimmerman, who announced his plans in August to step down as Six Flags’ president and CEO and will leave the board on Dec. 8.
Reilly will join the company at a time when it is facing pressure from activist investors like New York-based Jana Partners to improve its operations. Last month, NFL football player Travis Kelce joined an investment coalition — which includes Jana Partners — that owns about 9% of Six Flags.
Jana has said it plans to engage with Six Flags’ board and management team to improve the company’s marketing strategy and operations, accelerate technology modernization, assess its leadership and evaluate potential acquisitions.
Zimmerman, in the earnings call, said the company has an “ongoing constructive engagement” with the investment group led by Jana Partners, which includes Kelce. He said following the announcement of the group’s interest in Six Flags, there was a surge of consumer interest, a reaction that “reinforces our confidence that Six Flags is as exciting and relevant as ever.”
“Travis Kelce, influencers of that ilk, have tremendous followings,” Zimmerman said. “Travis Kelce is somebody that’s come to our parks in many of our locations and has an affinity for them. We are going to work very closely with him and his team to make sure that we optimize that opportunity.”
For the third quarter, net revenues were $1.32 billion, down $31 million, or 2% compared with the third quarter of 2024. Adjusted earnings before interest, taxes, depreciation and amortization was $555 million, down by $3 million.
That came despite attendance totaling 21.1 million guests, up 1%. One warning sign was a decline in how much guests were spending inside the theme parks, with more season pass holders visiting but fewer single-day visitors.
There were more warning signs in October. For the five-week period that ended Nov. 2, there were 5.8 million guests, down 11% compared to the same five-week period last year.
Six Flags shares closed Monday at $14.44, up 7%. Its 52-week high was $49.77.
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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