Last Tuesday we reported that ThinkGeek’s parent company Geeknet Inc. was in the process of being bought out by mall-based retailer Hot Topic for $17.50 per share and $37 million in cash, and that the acquisition would close by June 19. That deal is now off, thanks to an even better deal offered by an anonymous "strategic acquiror" that turned out to be none other than an even bigger mall-based retailer: GameStop.
First mentioned in a press release from May 29, GameStop offered $20 per share, which Geeknet’s board determined was a good enough deal that it qualified under the terms of the Hot Topic merger agreement as a legitimately superior proposal. Hot Topic had until 9:00am EDT on June 1 to meet or exceed the new proposal; that time came and went without a new offer from Hot Topic.
GameStop’s $20 per share deal also includes $37 million in cash and comes out to a total valuation of $140 million (compared to Hot Topic’s proposal value of $122 million), and the Geeknet board of directors has formally accepted it as of this morning. As part of the change in direction, Geeknet must pay Hot Topic a three percent "break-up fee," which GameStop has agreed to reimburse.
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