Six Flags Shares Fall 14% After Fatal Coaster Crash Meets Sale Push

Six Flags shares dropped roughly 14% on Tuesday after a passenger died on the Goliath roller coaster at Six Flags Over Georgia on Monday. The fatality hit a company already under activist pressure to sell itself, with NFL star Travis Kelce and hedge fund Jana Partners holding a roughly 9% stake and demanding the board explore a sale.

The victim was Hassan Jihad Ibn Kariem, a 42-year-old Atlanta educator. Police said preliminary witness and employee interviews indicated Kariem was ejected from Goliath, struck other patrons and fell beneath the ride. Six Flags has temporarily closed nine similar coasters across six parks and said it was "deeply saddened" and cooperating with authorities.

The accident does not establish that a sale is more likely. It does raise the stakes of a dispute over the company's future. Management must now handle a fatality investigation and reassure customers while a major shareholder presses the board to consider new ownership.

How did a celebrity investment become a turnaround fight?

Kelce teamed up with Jana Partners and other investors last October to acquire the roughly 9% stake. He framed the move personally at the time.

"As a lifelong Six Flags fan, I grew up going to these parks with my family and friends," Kelce said when he announced the investment. Six Flags named him a brand ambassador in March, giving the company a celebrity advocate with money on the line.

Jana's campaign has since escalated. In September, the hedge fund urged Six Flags to promptly hire an investment bank to explore a sale, citing disappointment with second-quarter results. The numbers explain the frustration:

• Second-quarter net loss of approximately $203 million, more than double the year-earlier loss
• Park foot traffic down 15% year over year from April to June, according to Citi analysts
• Seven parks sold for $331 million earlier this year
• Shares down more than 80% since the 2024 Cedar Fair merger, CNN reported Tuesday
• No profitable quarter recorded since the summer of 2024, after the $8 billion merger closed

The accident did not derail a smooth recovery. It hit a company whose performance had already pushed an influential investor to question whether it should stay independent.

What does the Georgia investigation cover?

Police said the preliminary account comes from witnesses and employee interviews. Kariem was ejected from Goliath, struck other patrons and fell beneath the ride. Georgia's Office of the Commissioner of Insurance and Safety Fire has opened an investigation alongside police.

Goliath will remain temporarily closed when the Georgia park reopens Friday. The company halted nine other roller coasters as it investigates. Investigators have not publicly established why Kariem flew out of his seat, and there is no finding that maintenance failures, financial pressures or operator distraction caused his death.

What does this mean for a potential buyer?

The tragedy adds legal and safety questions to an already strained balance sheet. Six Flags has previously warned that its liability insurance might not cover all potential liabilities and that future coverage might not be available at commercially reasonable rates. The financial cost of this incident remains unknown.

The company also faces separate lawsuits alleging serious injuries on X2 at Six Flags Magic Mountain in California, a ride it announced last month it would retire. Six Flags maintains X2 passed required safety tests. Those allegations do not connect to the Georgia death, but they add another legal issue to the turnaround.

For Jana and its fellow investors, greater pressure does not make an easier sale. A prospective buyer must weigh existing operating problems against an unresolved fatality investigation and its possible consequences. The accident may sharpen the debate over ownership without resolving what the business is worth.

By Daniel Okafor for Business Bearings