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This article was published on June 2, 2015

Geeks rejoice! GameStop to buy ThinkGeek, pays Hot Topic an undisclosed termination fee

Geeks rejoice! GameStop to buy ThinkGeek, pays Hot Topic an undisclosed termination fee
Natt Garun
Story by

Natt Garun

US Editor

Natt Garun is the former US Editor at The Next Web, managing the North American team on content, events, features and reviews coverage. She Natt Garun is the former US Editor at The Next Web, managing the North American team on content, events, features and reviews coverage. She previously wrote for Digital Trends, Business Insider, and Gizmodo. Facebook | Twitter | Google+

Last week, news swirled that mall mecca for all-things-punk Hot Topic was looking to acquire ThinkGeek, the online retailer for all-things-geek. In a twist, gaming retailer GameStop has stepped in and says it will instead acquire ThinkGeek, paying Hot Topic off for its troubles.

In a press release, GameStop says it will purchase Geeknet Inc., the parent company of ThinkGeek, for $20 a share (versus Hot Topic’s offer of $17.50 a share.) That gives the deal an “equity value of approximately $140 million, including $37 million of cash and cash equivalents as of March 31, 2015.”

The suggestion that Hot Topic was about to acquire ThinkGeek was met with mixed reactions last week. While many people were simply amused by the unexpected tie-up, others believed the retailer would commodify geek interests in the same way it did punk culture.

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ThinkGeek becoming a GameStop property makes a little more sense, as many of its products are appeal to the same gaming audience. Given GameStop’s plans to start selling retro games again, we can only imagine the kinds of throwback collectables we’ll see on offer on both ThinkGeek.com and the GameStop retail store.

Assuming no further interruptions, the GameStop acquisition is expected to close by the end of Quarter 2.

➤ GameStop Corp. Announces Agreement to Acquire Geeknet, Inc.

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