The purchase of ThinkGeek has turned into a bidding war. Image: Via ThinkGeek.com

Hot Topic is in talks with purchasing Geeknet, as long as the company doesn’t take the higher bid.

Hot Topic, which was bought by Sycamore Partners in 2013 for $600 million, is in talks of acquiring Geeknet.

As of May 26, Hot Topic was in talks of buying Geeknet, one of ThinkGeek’s companies, for $122 million, partially in cash and the rest in cash equivalents.

The purchase is based off of the company’s stocks being worth $17.50 a share.

According to PR Newswire,

“Consummation of the tender off is subject to certain customary conditions. Shareholders representing approximately 21% of Geeknet outstanding shares have committed to participate in the tender offer.”

This deal was on its way to happening, when a third unnamed party stepped in offering a better deal.

According to IGN, “Hot Topic CEO Lisa Harper said the company is pleased to have entered into this agreement, and it looks forward to “adding Geeknet’s innovative products and services” to its portfolio.”

ThinkGeek sells things from popular fandoms such as Star Wars, Star Trek, and The Walking Dead. From electronics to replicas of weapons used in your favorite TV show, this website is every fan girls, or boys, dream.

In the original release made on May 26 by Geeknet, Chief Executive Officer of Geeknet said,

“Our Board and management team believe this transaction is in the best interest of the Company and its stockholders.”

These characteristics would mesh well with the items and target audience that Hot Topic has cultivated over the years.

Hot Topic is also known for its selling of apparel and accessories of popular TV shows and movie franchises at the time.

The difference between the two companies is that Geeknet only has an online presence. According to the release,

“Since 1999, ThinkGeek has been creating a world where everyone can express their inner geek, embrace their passions, and connect with each other.”

This deal trended quickly over the internet, but only a day later Geeknet published another press release explaining that another company, whom they refuse to name, is offering $20 a share for the company. Despite this offer, Geeknet explained they are sticking to their original deal with Hot Topic, as was advised to them.

Geeknet explained that they will still review the offer, but have no immediate plans of accepting it. This doesn’t mean that they aren’t considering the deal.

According to the release,

“The Company’s board of directors, in consultation with its legal and financial advisors, will carefully review and consider the Bidder’s proposal.”

Since that release on May 27, a third release was made on May 29 where Geeknet Board of Directors saw the higher bid as having more potential than originally thought.

Geeknet went into more detail about the anonymous bidder, saying that the bidder is giving them six days, as of the day of their original offer, to accept the offer.

As the release states,

“The Company has notified Hot Topic of the Board of Director’s determination and pursuant to the Hot Topic Merger Agreement. Hot Topic has the option until 9 a.m., Eastern Time, on Monday, June 1, 2015 (‘Match Period’), to match or exceed the Bidder’s offer.”

If Hot Topic’s purchase of Geeknet goes through, the deal should be completed by June 19, 2015.

The release went onto explain that they intend to wait for a revised offer from Hot Topic before they make a final decision. They also assured that, despite the better offer from the “Bidder”, their board of directors are still in support of Hot Topic’s offer.

There are only a few days until the deadline is up, and shoppers are anxiously awaiting to find out the outcome.

Image: Via ThinkGeek.com