Games retail superpower GameStop has broadened its reach with the acquisition of Geeknet.
GameStop has acquired all of the ThinkGeek owner's common stock for $20 per share. As recently as May 22nd it was trading at $7.90 per share, but had in recent days shot up to just under $20.
The move means Geeknet's proposed merger with Hot Topic has now been scrapped. The deal values Geeknet at $140m. GameStop reckons the deal will boost annual net sales by over $100m and operating earnings by 20 per cent.
This acquisition creates value to all stakeholders involved,” GameStop CEO Paul Raines said. 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.”
Geeknet CEO Kathryn McCarthy added: 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.”