Geeknet Backs Out Of Hot Topic Buyout Deal, To Go With Higher Bid From GameStop

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%.