Last week it was announced that Hot Topic was buying out Geeknet, who is the parent company of ThinkGeek. What was odd about the news is that not much was mentioned about it by fans, for or against, about the news. I was saddened by the news because the store that went from emo-goth teenagers was changing into more of a pop culture retailer was buying a cool, novelty online store that I actually liked. A lot happens in a week.
On Tuesday, it was announced that the Hot Topic deal was off. It seems that GameStop is actually going to purchase the company for a larger dollar amount. The gaming retailer is dropping some $140 million against Hot Topic’s $122 million. Hot Topic will get a termination fee from GameStop for their trouble.
Paul Raines, chief executive officer of GameStop, stated, “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.”
“Our Board and management team believe this transaction is in the best interest of Geeknet and its stockholders,” said Kathryn McCarthy, chief executive officer of Geeknet. “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.”
It would seem that GameStop would be a better home to ThinkGeek than Hot Topic, unless we get Emo-Mario dolls. As Gamestop realizes that pop culture merchandise is making some serious cash at the moment, then need to cash in on the idea. This could be a lift for their storefront, if they choose to bring some of those hard-to-get merchandise into their stores. I think I am not alone in saying this, but ThinkGeek will be safer now in Gamestop’s hands.