That unnamed suitor elbowing into the Hot Topic-Geeknet deal has turned out to be video game retailer GameStop Corp., which has topped Hot Topic’s $17 per share offer with $20 per share, or $140 million in cash and equivalents.
GameStop will also pay the 3% breakup fee that Geeknet will incur for breaking its agreement with Hot Topic.
GameStop said that due to Geeknet’s profitability and strengths, the acquisition will increase its operating income, bring a portfolio of hard-to-procure licenses, and expand its omnichannel capabilities.
Hot Topic was a good fit for Geekent, but the mall-based pop-culture apparel company apparently didn’t take the opportunity to meet GameStop’s offer. And Geeknet’s synergies with GameStop may be even more lucrative.
Certainly, with the rising popularity of nerd memorabilia and pop-culture collectibles, this is a good move for GameStop. With physical video game sales falling, the retailer needs to have a host of added reasons for its customers to come into the store. Geeknet’s ThinkGeek merchandise and nimble logistics fit the bill.