Geeknet spurns Hot Topic for higher offer

Fairfax, Va. – Geeknet Inc. has determined that an acquisition offer from an unnamed strategic bidder of $20 per share, or about $134.6 million, is superior to a previous offer from Hot Topic of $17.50 per share, or about $117.3 million.

The Geeknet board unanimously determined that the binding offer from the strategic bidder meets the definition of a “superior proposal” in the merger agreement signed with Hot Topic on May 25.



Hot Topic has the option to meet or beat the superior proposal by Monday, June 1. The strategic bidder’s proposal is good until Tuesday, June 2. Geeknet is required to negotiate in good faith with Hot Topic through June 1 and will have to pay Hot Topic a 3% breakup fee if it accepts the alternate offer. The bidder has agreed to reimburse Geeknet for the breakup fee.