Well-Known UK Attractions Company Bought by Famous Investors

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. equity / ˈɛk wɪ ti / (n) – the monetary value of a company after debts have been subtracted
    Example:

    The company is slowly paying off its debts and trying to raise its equity by 10%.


  2. buyout / ˈbaɪˌaʊt / (n) – the act of buying an entire company to own it or gain control over it  
    Example:

    I work in an investment firm that manages company buyouts and acquisitions.


  3. rise to (something) / raɪz tə / (phrasal) – to increase to a certain number
    Example:

    The theme park’s number of visitors rose to a million based on the latest data.


  4. portfolio / pɔrtˈfoʊ liˌoʊ / (n) – a collection of a person’s or an organization’s properties, money, investments, and other assets
    Example:

    The construction company’s portfolio includes hundreds of heavy equipment.


  5. inclement / ɪnˈklɛm ənt / (adj) – experiencing rains
    Example:

    Classes were cancelled due to inclement weather.


Article

Read the text below.

Merlin Entertainments, a famous UK entertainment and attractions company, will be bought by The Lego Group and other investors.


Kirkbi Invest, Lego’s private investment company, will buy Merlin for $5.9 billion. This acquisition is in collaboration with Blackstone, a US-based private equity company, and the Canada Pension Fund Investment Board. According to Kirkbi’s CEO, the acquisition would entail Merlin’s private ownership and ensure its growth through the investors’ support. Following the buyout, reports showed that Merlin’s shares rose to 14%, giving the company a total market value of $7.5 billion.


Established in 1999, Merlin Entertainments is the world’s second-largest operator of attractions, with over 130 sites in 25 countries under its name. Merlin’s portfolio includes famous observation wheel the London Eye, wax museum Madame Tussauds [tu-SODZ], and theme park resort Alton Towers. According to reports, around 67 million people visited Merlin’s attractions in 2018.


Back in 2005, Merlin bought the Legoland theme parks from Lego. Currently, the entertainment company owns and runs eight Legoland parks, with plans to increase this figure to 20.


Despite the success it faces today, Merlin struggled with some setbacks before. In 2015, one of the roller coasters in Merlin’s Alton Towers crashed, resulting in 16 people getting injured and a fine of $6.2 billion. The company’s profits also suffered a major blow in 2017 due to inclement weather and external threats in London.


Because of the losses Merlin suffered, an analyst pointed out that the company’s $5.9 billion buyout price is lower than its supposed value two years ago.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think the buyout will help boost Merlin’s profit? Why or why not?
• If you were the owner of Merlin, how would you deal with the letdowns? Discuss.

Discussion B

• If you were an investor, what qualities would you look for in a company to invest in? Explain.
• If you had the opportunity, what company would you like to invest in? Why?