SeaWorld Entertainment Inc (NYSE:SEAS) is reportedly interested in the idea of a sale and a recent report claims that it has hired Evercore Partners Inc. (NYSE:EVR) to explore the options.
The report which was released by The Street claims that the company has hired Evercore as its financial advisors that will be tasked with finding potential buyers. The theme park operator has been having a rough time keeping business afloat over the past few years. This started after the company faced backlash for breeding killer whales in captive for use at its shows. The negative attitude against the company was escalated by a documentary called “Blackfish” that was released in 2013. It showed the world how SeaWorld handled its orcas.
Reports claim that the company’s decision to seek out a sale was in response to the pressure that the company has been receiving especially from activists. The Street claims that they have been pushing for a better perspective on how to improve its business model as well as boosting performance. SeaWorld chose Evercore because it specializes in public offerings, restructuring, divestitures, sales and private placements among others. The company turned down requests for comments on the matter.
“As a matter of policy, we do not comment on speculation and have not commented on rumors regarding advisors. Information about company performance will be publicly shared during our Q2 earnings report, scheduled next Tuesday, Aug. 8,” stated Aimee Jeansonne Becka, SeaWorld’s VP of public relations.
Seeking a sale might be a viable direction towards saving the business. Not only will it put the firm under new management, but it also makes it easier to convince the public when new management is involved. The company has been trying all sorts of measures to try and turn its fortune around. Unfortunately, the news about a potential sale caused SeaWorld’s stock to plummet further by 8 percent. The stock has been tanking for the past few years due to the negative publicity caused by the documentary as well as competition from rivals.
SeaWorld stock closed the latest trading session on Wednesday at $14.07 after tanking by 7.86 percent from the previous close.