Word was flying through the internet that Geeknet (the company that owns one of our favorite retailers, ThinkGeek) was up for grabs and Hot Topic was ready to pounce on that monkey. About a week later, not long after the announcement was made, the deal with Hot Topic had been dropped. It was revealed on Tuesday that Geeknet would be acquired by GameStop instead.
With GameStop’s agreement to pay about $140 million for the retailer’s company, it is no wonder that Hot Topic was blown out of the water when they had originally struck a deal at about $122 million.
On top of that, Geeknet has expressed how much better GameStop’s offer is through their recent press release:
“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,”
This could be an excellent move on GameStop’s part seeing as ThinkGeek is known for their vast products that include licensed merchandise for a plethora of video games. It would have also made sense for Hot Topic to obtain ThinkGeek because it has a lot to offer as far as pop culture items, but with a lot of games going digital, it might be good for GameStop to expand into other retail options. Even the CEO of GameStop, Paul Raines, believes that acquiring Geeknet will help GameStop’s expansion.
“Geeknet is an important expansion of our global multichannel platform and we are excited to leverage their product development expertise to broaden our product offering in the fast-growing collectibles category and deepen relationships with our existing customer base.”
Kathryn McCarthy, CEO of Geeknet agreed that the deal would benefit both parties involved and reassured investors in a statement:
“Our Board and management team believe this transaction is in the best interest of Geeknet and its stockholders… As a part of GameStop’s family of brands, Geeknet will be well-positioned to achieve our goals of increasing our brand awareness and expanding our product offerings.”
There is still time, however, between now and the closing of the deal between the two companies, which won’t be until the end of GameStop’s second quarter. At anytime, a new and better offer can come along and steal those monkeys away.
Do you think this is a good move for GameStop? Would you have rather seen Hot Topic take over Geeknet or are you relieved that GameStop stepped in and put a stop to that deal? Let us know in the comments below!