GameStop Beats Hot Topic, Becomes New Owner of ThinkGeek
Last week we heard that Hot Topic made an offer to buy Geeknet and absorb ThinkGeek into its developing-yet-still-incredibly-emo geek merch. However, sudden developments in the deal has shifted and now GameStop is the proud owner of Geeknet. WHAT?!
According to the press release GameStop provided:
“Geeknet entered into a definitive agreement under which GameStop will acquire all of the outstanding shares of Geeknet’s common stock for $20.00 per share in cash. […] The transaction has a total equity value of approximately $140 million, including $37 million of cash and cash equivalents as of March 31, 2015.
Geeknet also announced that it had terminated its previously announced merger agreement with Hot Topic, Inc. (“Hot Topic”). Following discussion with both GameStop and Hot Topic, the Board of Directors of Geeknet determined that the GameStop transaction represented a superior proposal. Geeknet will pay Hot Topic a termination fee pursuant to the Hot Topic agreement, for which GameStop has agreed to reimburse Geeknet.”
Geeknet’s agreement with Hot Topic Inc. was valued at $122 million. Like with the Hot Topic announcement, I have incredibly mixed feelings about Geeknet merging with a company like GameStop. Which is the lesser of two evils, Hot Topic or GameStop? I can’t tell! Furthermore, we still don’t know what this means for our favorite geeky online store. Hopefully, they’ll continue to be left to their own devices, they’ll just have a larger license catalogue from which to choose.