Fab Was Once Valued at $1 Billion. Now, It May Sell for a Fraction of That.
Fab's trajectory has been something of a roller-coaster ride. There were the multiple twists (the site started in 2011 as a dating site for gay men, then became a flash-sale site, then became traditional ecommerce), the meteoric rise and the series of dramatic plummets.
Now, it looks like the ride is finally coming to an end. The company is reportedly in talks to sell to PCH International, an electronics contract manufacturer, for a fraction of its former $1 billion valuation.
The deal could be as little as $15 million, according to TechCrunch -- although The Wall Street Journal reports that the number could be closer to $25 million – and would not include Hem, a Finland-based furniture design company Fab recently acquired, both outlets report.
While still in its early stages, the deal could be completed by the end of the year.
Related: This Could Be Fab's Last Breath
Less than two years ago, the company was riding high, experiencing explosive growth, but things peaked in the summer of 2013, when it raised $150 million in funding at a valuation of $1 billion.
After that, it was something of a free fall. The company's expanding costs led to multiple rounds of layoffs; as chief executives began to abandon ship in droves, the staff was ultimately pared down to near non-existence.
Fab's CEO and co-founder Jason Goldberg – who has consistently and passionately defended the long-term health of his company even as things moved from bad to worse – will stay on as CEO of Hem, the Journal reports.
Since its launch, Fab has raised a total of $336 million in total funding.
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