Hot Topic, the teen brand and retailer that is highly desirable by youth culture shoppers and continues to perform well as revealed in our 15th Annual Spring Youth Culture Study 2015, announced on Tuesday, May 26, 2015, that is was buying Geeknet for $122 million. This means that Hot Topic is moving into the realm of sci-fi and gaming, which is a compliment to its licensed-oriented designs for passionate fans, particularly band merch.
Geeknet owns ThinkGeek which caters to online buyers of gaming and various sci-fi accessories. But what most people may not know is that Geekmet used be called SourceForge, which used to be called VA Linux Systems (the open-sourced Linux), which once was the most successful IPO of all time during the dot com bubble days.
Hot Topic will acquire all of the outstanding shares of Geeknet, Inc. common stock at a purchase price of $17.50 per share.
“We are pleased to have entered into this agreement and look forward to adding Geeknet’s innovative products and services to our portfolio,” said Lisa Harper, Chief Executive Officer of Hot Topic. “Geeknet’s unique concept and approach to the online retail community is a strong fit with our business strategy, which is focused on delivering great products for avid fans of various licensed properties, and we are excited about the opportunity to help drive profitable growth and further enhance value for Geeknet’s customers.”
“Our Board and management team believe this transaction is in the best interest of the Company and its stockholders,” said Kathryn McCarthy, Chief Executive Officer of Geeknet. “We remain focused on increasing our visibility, providing a platform to stimulate ideas and creativity, and expanding our product offerings to keep up with industry and customer demands. As a subsidiary of Hot Topic, Geeknet will be well-positioned to achieve these goals.”