Geeknet goes with a new buyer for $140M

The “unnamed strategic bidder” whooutbid Hot Topic to purchase Geeknet Inc.has been revealed.

GameStop Corp. will acquire all of the outstanding shares of Geeknet’s common stock for $20 per share in cash, or about $140 million.



Geeknet also announced that it has terminated its previously announced merger agreement with Hot Topic Inc. Following discussion with both GameStop and Hot Topic, Geeknet determined that the GameStop transaction represented a superior proposal. Geeknet will pay Hot Topic a termination fee, for which GameStop has agreed to reimburse Geeknet.



“This acquisition creates value to all stakeholders involved,” said Paul Raines, CEO of GameStop. “The addition of 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.”



The transaction has been approved by the board of directors of both companies. The acquisition is expected to close by the end of GameStop’s second quarter 2015.



“Our board and management team believe this transaction is in the best interest of Geeknet and its stockholders,” said Kathryn McCarthy, CEO of Geeknet. “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.”



Geeknet stockholders representing approximately 21% of outstanding shares have committed to participate in the tender offer.