ThinkGeek Sold

Smoove_B · Post by **Smoove_B** » Tue Jun 02, 2015 12:58 pm

I don't know what suprised me more -- that they were purchased by GameStop or that last week they were going to be purchased by Hot Topic:

GameStop Corp. (NYSE: GME), a family of specialty retail brands that makes the most popular technologies affordable and simple, and Geeknet, Inc. (Nasdaq: GKNT) (“Geeknet”), the parent company of ThinkGeek and ThinkGeek Solutions, today announced they have entered into a definitive agreement under which GameStop will acquire all of the outstanding shares of Geeknet’s common stock for $20.00 per share in cash. The transaction has been approved by the board of directors of both companies and will be completed by means of a tender offer. The transaction has a total equity value of approximately $140 million, including $37 million of cash and cash equivalents as of March 31, 2015.

From Ars Technica:

Last Tuesday we reported that ThinkGeek’s parent company Geeknet Inc. was in the process of being bought out by mall-based retailer Hot Topic for $17.50 per share and $37 million in cash, and that the acquisition would close by June 19. That deal is now off, thanks to an even better deal offered by an anonymous "strategic acquiror" that turned out to be none other than an even bigger mall-based retailer: GameStop.

Isgrimnur · Post by **Isgrimnur** » Tue Jun 02, 2015 1:07 pm

LawBeefaroni · Post by **LawBeefaroni** » Tue Jun 02, 2015 1:13 pm

Matrix · Post by **Matrix** » Tue Jun 02, 2015 1:51 pm

Super cool. Think geek is really iconic, so thats quiet a turn around and then an even larger twist

Daehawk · Post by **Daehawk** » Tue Jun 02, 2015 1:54 pm

Now they can get rid of all the cool stuff and deal in used t-shirts.

Rumpy · Post by **Rumpy** » Tue Jun 02, 2015 2:41 pm

I'm impressed that they've managed to hold off for as long as they have. I guess that's a testament to how well they've been doing. I only ever bought a few things from them since shipping to Canada was very expensive.

Daehawk · Post by **Daehawk** » Tue Jun 02, 2015 2:48 pm

I always considered them a bigger much more overpriced Curio City.

pr0ner · Post by **pr0ner** » Tue Jun 02, 2015 3:49 pm

Daehawk wrote:I always considered them a bigger much more overpriced Curio City.

Uhhh, wow. No offense to Kraken, but that's not an accurate comparison at all. ThinkGeek actually puts on events and cool trivia nights. How is that a bigger version of Curio City?

Daehawk · Post by **Daehawk** » Tue Jun 02, 2015 4:04 pm

Dont know anything about that. Just had an assortment of items like CC to me.

coopasonic · Post by **coopasonic** » Tue Jun 02, 2015 4:07 pm

pr0ner wrote:
Daehawk wrote:I always considered them a bigger much more overpriced Curio City.
Uhhh, wow. No offense to Kraken, but that's not an accurate comparison at all. ThinkGeek actually puts on events and cool trivia nights. How is that a bigger version of Curio City?

It's not all that inaccurate. They are both places to buy stuff that nobody needs... curiosities, one might say. I have ordered from ThinkGeek a few times and used to watch their "New Items" page daily, but I never knew anything about events or trivia nights. Are you sure you aren't confusing them with your local sports bar?

coopasonic · Post by **coopasonic** » Tue Jun 02, 2015 4:11 pm

I just looked and I was kind of correct. It appears they are local to you. If you go to Boston, Kraken would be happy to ask you random questions too.

pr0ner · Post by **pr0ner** » Tue Jun 02, 2015 4:21 pm

coopasonic wrote:I just looked and I was kind of correct. It appears they are local to you. If you go to Boston, Kraken would be happy to ask you random questions too.

I'm pretty sure Kraken would tell me to get off his lawn. I stand by my comments that it's an inaccurate comparison.

Isgrimnur · Post by **Isgrimnur** » Tue Jun 02, 2015 4:24 pm

coopasonic wrote:I just looked and I was kind of correct. It appears they are local to you. If you go to Boston, Kraken would be happy to ask you random questions too.

He could join Kraken's trivia team and they could work together.

Matrix · Post by **Matrix** » Tue Jun 02, 2015 4:44 pm

I am with prooner on this, Its like comparing block buster in its heyday with local video shop. While in most general definition they are similar, in reality, they are totally different businesses. Its like comparing mom and pop grocery shop to wall mart , or local clothing store to target. At first glance they have some resemblance of similarity, but anything but most surface observation will spot that they are completely different business. I have done some eCommerce before, and currently working on start up in eCommerce space(actually similar to this category of goods) and logistically, operationlay, sales, marketing, anything really there is no commonality.

AWS260 · Post by **AWS260** » Tue Jun 02, 2015 6:09 pm

Does this mean I can trade in my old PS2 games for a tauntaun sleeping bag?

Kraken · Post by **Kraken** » Tue Jun 02, 2015 7:10 pm

pr0ner wrote:
Daehawk wrote:I always considered them a bigger much more overpriced Curio City.
Uhhh, wow. No offense to Kraken, but that's not an accurate comparison at all. ThinkGeek actually puts on events and cool trivia nights. How is that a bigger version of Curio City?

No offense taken. First, they're big enough to commission original, exclusive products; second, everything they sell is a pop culture tie-in of some kind.

We both sell novelties, but most of mine are useful in some way while most of theirs are decorative or apparel.

Sudy · Post by **Sudy** » Tue Jun 02, 2015 9:39 pm

Rumpy wrote:I only ever bought a few things from them since shipping to Canada was very expensive.

Ditto. Would care more about subject if buying from them didn't cost me 60% in duty.

Rumpy · Post by **Rumpy** » Wed Jun 03, 2015 1:40 am

Sudy Nym wrote:
Rumpy wrote:I only ever bought a few things from them since shipping to Canada was very expensive.
Ditto. Would care more about subject if buying from them didn't cost me 60% in duty.

Yeah, no kidding. My brother told me the trick to order in bulk with friends, to make it more worth it, but even as it is, it's just more often the case not worth the hassle.

Kraken · Post by **Kraken** » Wed Jun 03, 2015 3:06 am

Canada is the worst country for duties. Most countries exempt anywhere from $100 up to $2500 before the taxman cometh. Last time I checked Canada only spotted you $25.

UPS Standard is such a racket that I don't offer it anymore after complaints from Canadian customers. They tease you with an affordable shipping charge and then hit you with duties and a local delivery fee. They're more lax about USPS shipments but they soak UPS every time.

BTW, as of 5/31 the USPS switched to zone-based rates in Canada. If you live close to New England you might find my international shipping charges a little bit more affordable. If you're on the Wrong Coast then it will cost more. Right now I can ship anywhere in the world except Canada because those changes broke my international shipping module, but that will be fixed in a day or two.

Odin · Post by **Odin** » Wed Jun 03, 2015 6:29 am

I love the idea of ThinkGeek, but in practice... my wife had bought some stuff from them and they royally screwed up the order(s). I don't recall the details, but to their credit they ended up giving her something like double or triple the original value of her order to spend on the site (which may well have been yet another screwup on their part - we didn't ask too many questions). And I have to say, I scoured the site and had a really hard time coming up with something to spend $70 on. Granted, I constrained myself - I was trying to find something that the whole family could appreciate, rather than just a sonic screwdriver for myself or whatever. I made a couple of passes and came up with nothing. We later found a sleeping dragon bundt-cake pan that was cool and got that, but I think we still have about $45 in credit that I couldn't be bothered to spend.

Blackhawk · Post by **Blackhawk** » Wed Jun 03, 2015 11:07 am

I believe all I've ever bought from them are a couple of mugs. I have a small wishlist there, but rarely have enough to justify spending on 'useless but fun' stuff.

Smoove_B · Post by **Smoove_B** » Wed Jun 03, 2015 11:14 am

I picked up some D&D themed pint glasses in December from them. Never saw them anywhere else. I'm guessing having shelf space in a GameStop is going to help them tremendously.

J.D. · Post by **J.D.** » Wed Jun 03, 2015 11:39 am

Sudy Nym wrote:
Rumpy wrote:I only ever bought a few things from them since shipping to Canada was very expensive.
Ditto. Would care more about subject if buying from them didn't cost me 60% in duty.

If you're willing to drive to Niagara Falls you can ship stuff from US eComm sites to a PO Box there and then pick it up and just pay the tax when you bring it back in. That's what I do with all my US purchases. Nothing gets shipped over the border anymore.

Rumpy · Post by **Rumpy** » Wed Jun 03, 2015 1:06 pm

Kraken wrote: UPS Standard is such a racket that I don't offer it anymore after complaints from Canadian customers. They tease you with an affordable shipping charge and then hit you with duties and a local delivery fee. They're more lax about USPS shipments but they soak UPS every time.

Oh yeah, totally. Totally. As a matter of fact, my Dad ordered a book recently and it was shipped via UPS. Normally books are exempt from duty fees, but they wanted $200 in duty fees! WTF? It was a book from a self-publisher. That does not compute. Purolator, the UPS handler here has even had so many complaints about UPS and the delivery guy said they've ended their contract with UPS due to the way they screw with customers.

J.D. wrote: If you're willing to drive to Niagara Falls you can ship stuff from US eComm sites to a PO Box there and then pick it up and just pay the tax when you bring it back in. That's what I do with all my US purchases. Nothing gets shipped over the border anymore.

That's what my Dad does when he ships telescopes to U.S customers. At one time, he used to use UPS, but when customers would complain about surprise fees, even when he'd had forms prepaid to prevent that, he stopped that practice. Now he drives down to SSM to ship them from the U.S side.

LawBeefaroni · Post by **LawBeefaroni** » Fri Sep 04, 2015 1:08 pm

First brick and mortar ThinkGeek store set to open in Orlando.

ThinkGeek, the online seller of geeky gadgets, is planning to open its first physical store at the Florida Mall in Orlando, Fla., on Sept. 25.

...

“The opening of our first brick and mortar store is a significant milestone for the brand and a great example of how the GameStop acquisition is a win for our customers,” Katy McCarthy, president of ThinkGeek, said in a statement. “While people know us today as an online retailer, the GameStop connection will bring vastly more visibility to the brand and our ever expanding selection of exclusive products.”

Smoove_B · Post by **Smoove_B** » Fri Jun 14, 2019 10:24 am

ThinkGeek is now closing their website:

Late last night, ThinkGeek announced that they will be closing down their website on July 2nd and moving the bulk of their business over to parent company GameStop (ThinkGeek's 40 physical stores will remain open for the foreseeable future). To prepare for the move, ThinkGeek is offering 50% off sitewide with the code MOVINGDAY. We highly suggest starting with their bestsellers as they will go fast. Keep in mind that all sales are final. Details about the sale are available in their new FAQ.

AWS260 · Post by **AWS260** » Fri Jun 14, 2019 10:50 am

Going down with the mothership, it appears.

Isgrimnur · Post by **Isgrimnur** » Fri Jun 14, 2019 10:57 am

Gamestop

GameStop (NYSE: GME) investors had been bracing for bad news in the company's earnings report. Yet Wall Street was still shocked by the retailer's actual first-quarter results.

Shares plummeted after the video game retailer revealed significant demand declines. Modest financial improvements were ignored as investors focused instead on news that the company has ended its hefty dividend payment.

CEO George Sherman, who stepped into the leadership role about a month earlier, was clear in a conference call with analysts that GameStop has a big challenge ahead as it works to transform the business under difficult industry conditions. Below are a few highlights from that presentation by the management team.
...
A brutal selling environment

Ending a massive dividend

Asking for lots of patience

LawBeefaroni · Post by **LawBeefaroni** » Fri Jun 14, 2019 11:14 am

That was like a week ago, wasn't it?

Isgrimnur · Post by **Isgrimnur** » Fri Jun 14, 2019 11:15 am

The call article is dated from Wednesday.

LawBeefaroni · Post by **LawBeefaroni** » Fri Jun 14, 2019 11:31 am

Ah. It's a reprint of a Motley Fool article. Was confused for a minute.

GRAPEVINE, Texas, June 04, 2019 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME), today reported sales and earnings for the first quarter ended May 4, 2019.

...

A conference call with GameStop Corp.’s management is scheduled for June 4, 2019 at 5:00 p.m. ET to discuss the company’s financial results.

Isgrimnur · Post by **Isgrimnur** » Fri Jun 14, 2019 11:51 am

¯\_(ツ)_/¯

Zarathud · Post by **Zarathud** » Fri Jun 14, 2019 12:16 pm

My youngest daughter loves Gamestop but has no money. And they dont carry very many 3DS games.

Blackhawk · Post by **Blackhawk** » Fri Jun 14, 2019 12:49 pm

Gamestop was fun, once, when it was in competition with EB. Then it just became an expensive hard-sell.

Now it is Blockbuster. It is Tower Records. It is a Fotomat.

GreenGoo · Post by **GreenGoo** » Fri Jun 14, 2019 1:30 pm

Yeah, it boggles my mind that they were paying a huge dividend up until recently. How? Were they just liquidating everything and funneling into investors' pockets? I mean, good, I guess. They're dead no matter what they do, unless they switch industries/primary business somehow.

LawBeefaroni · Post by **LawBeefaroni** » Fri Jun 14, 2019 2:24 pm

I'd have to look but I'm guessing they just never shrink the dividend. $0.40 on a $40 stock is 1%. But when the share price falls to $10 and you don't adjust, you've effectively quadrupled the divy. At $5 you're paying 8%. Way too high when you're struggling to even break even.

Why didn't they shrink it? Fear of further driving down share price and hope that things would get better? Not sure.

coopasonic · Post by **coopasonic** » Fri Jun 14, 2019 2:25 pm

I assume this means PC gaming is dead?

LawBeefaroni · Post by **LawBeefaroni** » Fri Jun 14, 2019 2:28 pm

coopasonic wrote: ↑Fri Jun 14, 2019 2:25 pm I assume this means PC gaming is dead?

GameStop ceased to be a PC gaming bellwether 10 years ago at least. Back when PC gaming died for the 3rd time.

GreenGoo · Post by **GreenGoo** » Fri Jun 14, 2019 3:14 pm

coopasonic wrote: ↑Fri Jun 14, 2019 2:25 pm I assume this means PC gaming is dead?

Not only that, but rpgs too!

Rumpy · Post by **Rumpy** » Fri Jun 14, 2019 4:19 pm

Blackhawk wrote: ↑Fri Jun 14, 2019 12:49 pm Gamestop was fun, once, when it was in competition with EB. Then it just became an expensive hard-sell.

I always found it super expensive and not all that great. I always found them rather condescending, especially when it came to trying to get people to sign up to their membership program. And if you didn't, they'd be snarky.