Tech

One Kings Lane: From almost $1 billion to 'not material'

Co-founders of One Kings Lane Alison Pincus and Susan Feldman.
Donato Sardella | Getty Images

One Kings Lane, an online retailer, raised money in 2014 at a valuation of close to $1 billion. Now it hardly carries a price tag.

Bed Bath & Beyond said Tuesday that it acquired One Kings Lane in an all-cash deal, and the purchase price was "not material."

The acquisition concludes a rapid downward spiral for One Kings Lane, which sells personalized home decor. After raising $112 million in January 2014 at a value of over $900 million, the San Francisco–based company got caught up in a shakeout of so-called flash sale sites that offered a select few products on a daily or weekly basis.

Fab.com sold for $15 million in 2015 after once being valued at $1 billion, and Gilt Groupe sold to Hudson's Bay in January for $250 million, a quarter of its peak value.

Also in January, Recode reported, citing sources familiar with the matter, that One Kings Lane had notified prospective buyers of its willingness to sell for less than the $230 million it had raised in venture capital. Bed Bath & Beyond didn't disclose the purchase price but said the transaction will be "slightly dilutive" to earnings per share this year.

Bed, Bath & Beyond surges
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Bed, Bath & Beyond surges

Investors in One Kings Lane include high-profile names Kleiner Perkins Caufield & Byers, Greylock Partners, Institutional Venture Partners and Tiger Global. Ali Pincus, the wife of Zynga co-founder Mark Pincus, co-founded the company in 2009.

"We have followed One Kings Lane and loved its site since its inception," said Steven Temares, Bed Bath & Beyond's CEO, in the statement. "We are thrilled for the opportunity to provide them with additional support and exposure to promote and grow their brand."

You'd have to imagine he's equally thrilled to get it on the cheap.