This morning Geeknet (parent company of ThinkGeek) and Gamestop in a joint press release announced that Gamestop was in the process of acquiring the geek company for $140 Million dollars after topping Hot Topics original proposal of $122 Million. Geeknet has to pay to Hot Topic a 3% break fee for ending their deal but Gamestop will reimburse them for the cost. This comes as a big shock since last week it seemed like Hot Topic had it in the bag. Hot Topic had offered $17.50 a share and $37 million in cash and then Gamestop came in and offered $20 a share and $37 Million in cash, which Geeknet took as a superior offer.
The process for acquisition will take until August which means there is a chance another company might swoop in a outbid Gamestop but for now they are the top dog.
The press release stated that customers will be able to see visible impacts from the acquisition such as possible in store pickup of Think Geek items, Power UP rewards from the Think Geek catalogue, more Think Geek items being available to Gamestop customers.
The big question is how will this affect consumers and people who enjoyed purchasing things from ThinkGeek. I personally myself do not like Gamestop’s business practices. This calls into question for me how much being bought by Gamestop will affect the company.
Source: Geeknet press release