ThinkGeek has seen a bit of extra news coverage lately as they first accepted an offer from Hot Topic, Inc. to purchase parent company Geeknet at $17.50 per outstanding share (approximately $117.3 million), then terminated that deal and accepted an offer from GameStop of $20 per outstanding share (approximately $140 million.) Hot Topic had until June 1 to counter-offer GameStop’s proposal and save their deal, but they did not do so, giving GameStop and Geeknet the ability to move forward with this more lucrative (for ThinkGeek) deal.

GameStop has agreed to reimburse Geeknet for the termination fee that goes along with the cancellation of the Hot Topic purchase, and stands to add a projected $100 million to its annual sales with the acquisition of Geeknet, which includes retailers ThinkGeek and ThinkGeek Solutions.

What does all of this mean for you, as a consumer of GameStop and ThinkGeek products?

“This acquisition creates value to all stakeholders involved. 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.”

Photo Credit: arstechnica.com

Photo Credit: arstechnica.com

From the GameStop press release, they expect this acquisition to:

  • Expand GameStop’s diversified revenue stream by adding ThinkGeek, the No. 1 brand in the fast growing collectibles category
  • Once completed, the acquisition is expected to increase operating earnings, and has a targeted IRR that exceeds 20%
  • Extends the company’s global, multichannel retail expertise – online, pickup-at-store, web-in-store and standalone retail
  • Utilizes Geeknet’s proprietary product innovation capabilities and established portfolio of premier, hard-to-secure licenses
  • Leverages GameStop’s operational expertise and infrastructure to address Geeknet’s profitability
  • Drive deeper engagement with GameStop’s core customers, in particular the 40 million global PowerUp Rewards members, by offering them exclusive, unique and cutting edge merchandise related to their favorite entertainment

Expect to see more collectibles and geeky merchandise in your local GameStop in the near future as they try to maintain a foothold in the market that has been rapidly dwindling thanks to online retail. The acquisition is expected to be complete by the end of GameStop’s 2nd quarter.

Via Gamestop.com