NEW YORK (TheStreet) -- GeekNet (GKNT) shares are up 114.5% to $16.94 in trading today after the Fairfax, VA-based company was acquired by privately held teen apparel retailer Hot Topic for $122 million today.
GeekNet is the owner of retail website ThinkGeek which sells toys, gadgets and memorabilia related to pop culture movies and television shows as well as comics and other entertainment for "geeks".
Hot Topic, which operates over 650 stores in North America, will pay about $17.50 per share for the company, more than double the stock's previous closing price of $7.90.
Hot Topic announced that the tender offer for the company will commence no later than June 19.
"We are pleased to have entered into this agreement and look forward to adding Geeknet's innovative products and services to our portfolio," said Hot Topic CEO Lisa Harper.
"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," Harper said.
TheStreet Ratings team rates GEEKNET INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GEEKNET INC (GKNT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."