One Kings Lane was worth nearly $1 billion, but now it's been sold for a 'not material' amount to Bed Bath & Beyond (BBBY)

Bed Bath & Beyond has boughtOne Kings Lane, a home-goods website that, at its peak, was valued at more than $900 million. The acquisition price of Tuesday's purchase of the company was not disclosed.Bed Bath & Beyond, which generated $12 billion in net sales in its most recent fiscal year,saidthatthe purchase price was "not material."One Kings Lane was once a fast-growing flash-sale site for home goods and had the valuation to match it. The company, founded by Alison Pincus, raised more than $225 million in venture capital from top-tier investors, including Kleiner Perkins and IVP, at a reported $900 million valuation.But a report from Recode in January 2016 said that the company was looking to be sold for a quarter of that valuation.The site rose to prominence at a time when flash sales, like those from Fab and Gilt Groupe, seemed like the next wave of e-commerce. Butneither were a resounding success.Gilt Groupe, a startup that was once worth billions, recently got boughtfor a mere $250 million. Fab, another near-billion-dollar startup that was like an online-only Ikea, sold its remains for about $20 million. Bed Bath & Beyond CEOSteven Temares said in the acquisition announcement that the furniture site would become"a cornerstone for Bed Bath & Beyond's growing offerings in furniture and home dcor."Shares of Bed Bath & Beyond were roughly unchanged in after-hours trading on Tuesday.SEE ALSO:Move Loot, the startup that wanted to dethrone Craigslist as the go-to place to sell furniture, is now in acquisition talksJoin the conversation about this storyNOW WATCH: This startup uses cremated human remains to grow trees
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