E-commerce site fell a long way from its near-unicorn days.
The deal was publicly announced in June, but Bed Bath & Beyond BBBY only would say that the “purchase price was not material” to the company, which currently has an enterprise value of around $7.6 billion. One press report suggested a price tag south of $30 million, but it seems even that estimate was way too high.
What Bed Bath & Beyond actually paid underscores how far One Kings Lane fell below investor expectations.
One Kings Lane was launched in 2009 by Ali Pincus and Susan Feldman as a Los Angeles-based flash sales site focused on high-end furniture and home decor. It would go on to raise more than $200 million in venture capital funding, from big-name firms like Greylock, Kleiner Perkins, Institutional Venture Partners, and Tiger Global. Its final outside funding round came in early 2014, at a post-money valuation north of $800 million.
The $11.78 million price-tag is net of any acquired cash. Bed Bath & Beyond also said in its regulatory filing that the results of One Kings Lane’s post-acquisition operations have not been material.
A Bed Bath & Beyond spokeswoman has not yet responded to a request for comment.