ThinkGeek is an extremely popular online purveyor of all things geeky. Recently, it appeared that Geeknet Inc., (ThinkGeek’s parent company) was going to be acquired by Hot Topic. Things have changed, and it turns out that GameStop is now set to acquire Geeknet, Inc. There are those who are breathing a sigh of relief because they weren’t so keen on Hot Topic.
GameStop posted a press release that states that Geeknet has terminated its agreement with Hot Topic. The press release says that GameStop and Geeknet, Inc., “have 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 press release goes on to say that this transaction has been approved by the board of directors of both companies. It also says: “The transaction has a total equity value of approximately $140 million, including $37 million of cash and cash equivalents as of March 31, 2015.”
What happened to the potential sale of Geeknet, Inc., to Hot Topic? Geeknet, Inc., has posted the same press release as GameStop did. Either one explains a bit more about the situation.
Geeknet also announced that it had terminated its previously announced merger 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.
Engadget reported that Hot Topic was offering Geeknet $17.50 per share. It is easy to see why a company like Geeknet would want to take the offer from “the highest bidder”, so to speak.
In short, GameStop will acquire Geeknet, (parent company of ThinkGeek and ThinkGeek Solutions). Right now, one can only speculate about what changes will come as a result. I’ve been a long time fan of ThinkGeek and have made several purchases from it. Now might be a good time to use up my remaining Geek Points… just in case.