Geeknet Inc. has backed out of the deal to be acquired by Hot Topic, which was announced just a week ago, so it can accept a higher buyout bid from GameStop Corp. . The bid by GameStop is valued at $140 million, while the Hot Topic deal was valued at $122 million. Under terms of the new deal, video game retailer GameStop will pay $20 in cash for each Geeknet share, or 17% above Hot Topic's per-share bid of $17.50 and 1.1% above Monday's closing price of $19.78 for Geeknet's stock. Geeknet, which is the parent company of retailer ThinkGeek and ThinkGeek Solutions, said it will pay Hot Topic a termination fee, which was not disclosed, for which it will be reimbursed by GameStop. Geeknet's stock, which is currently halted for news dissemination until 9:55 a.m. Eastern, has more than doubled since the Hot Topic deal was announced ahead of the May 26 open. GameStop's stock slipped 0.9% in morning trade, and has run up 28% year to date, while the S&P 500 has gained 2.1%.
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