After ultimatum, Geeknet spurns Hot Topic for GameStop

In the end, Geeknet went with the company that valued it most.
Just a week after announcing it had entered into a “definitive agreement” to merge with retailer Hot Topic, the Fairfax-based company that runs online nerd culture store ThinkGeek has chosen a new beau.
In a press release Tuesday, it announced a new “definitive agreement,” but to be acquired this time by GameStop, the video game store.
“Our Board and management team believe this transaction is in the best interest of Geeknet and its stockholders,” said CEO Kathryn McCarthy in the release.
In the new deal, GameStop will buy up all of Geeknet’s outstanding common stock at $20 a piece, for a total $140 million. Hot Topic had offered $17.5 per share, or a total $122 million.
After accepting the offer, Geeknet had set an ultimatum, giving Hot Topic the weekend to match the “superior proposal” from GameStop.
Geeknet announced it would pay Hot Topic a termination fee, for which it will be reimbursed by GameStop.