Target Tried To Buy Casper Sleep For $1 Billion, But a Deal Fell Through

By Tomi Kilgore Markets MarketWatch Pulse

Target Corp. held discussions to buy New York-based mattress startup Casper Sleep for $1 billion, but Target gave up after a deal couldn't be worked out, according to a Recode report, which citing "multiple sources." Instead, the report said Friday that Target plans to take a minority stake in Casper, as the discount retail giant is likely to be the lead investors in a large new round of funding, which could be announced in the coming weeks. Target announced this week that it would start selling Casper mattresses, which were previously available only online, in Target stores starting June 18. Target said it would also offer Casper pillows, sheets and exclusive new Casper products. Target's stock, which was up 0.3% in afternoon trade, has tumbled 22% year to date, while the SPDR S&P Retail ETF has lost 6.9% and the S&P 500 has gained 6.6%.

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