Hot Topic buying ThinkGeek? Nope, SNIPED!
This morning, GameStop made the following announcement, perhaps making a solidarity play for all compound yet capitalized merchandiser names….
“Geeknet also announced that it had terminated its previously announced merger agreement with Hot Topic, Inc. (“Hot Topic”). Following discussion with both GameStop and Hot Topic, the Board of Directors of Geeknet determined that the GameStop transaction represented a superior proposal. Geeknet will pay Hot Topic a termination fee pursuant to the Hot Topic agreement, for which GameStop has agreed to reimburse Geeknet.”
What this might mean for ThinkGeek and possible Brick and Mortar locations is anyone’s guess, as is the hypothetical of the previously supposed Hot Topic buy out. Celebrating their move, GameStop’s CEO, Paul Raines, said:
“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.”
…While Geeknet CEO Kathryn McCarthy was reporting to have said:
“Our Board and management team believe this transaction is in the best interest of Geeknet and its stockholders. As a part of GameStop’s family of brands, Geeknet will be well-positioned to achieve our goals of increasing our brand awareness and expanding our product offerings.”
So everything seems hunky-dory….unless you’re Hot Topic. Luckily, I think I know where they can buy some awesome music to let out a sense of dark frustration…