eBay Acquires Depop from Etsy in $1.2 Billion All-Cash Deal
Online marketplace eBay has announced its acquisition of the secondhand fashion platform Depop from Etsy for approximately $1.2 billion in an all-cash transaction. The deal, which was approved by the boards of directors of both companies, is expected to conclude in the second quarter of the current year. This acquisition allows eBay to expand its reach into a younger demographic, while Etsy aims to re-focus on its core marketplace.
Acquisition Details
The transaction, publicly announced on Wednesday, involves eBay purchasing Depop for approximately $1.2 billion in cash. Depop, founded in London in 2011, is anticipated to maintain its existing name, brand, platform, and cultural identity following the acquisition. eBay's stated rationale for the acquisition is to attract a younger consumer base, particularly Gen Z shoppers.
This demographic segment reportedly shows increasing interest in pre-owned clothing for reasons such as the availability of unique items, lower costs, and efforts to reduce items reaching landfills.
As of December 31, 2025, Depop's marketplace reported 7 million active buyers and over 3 million active sellers. A key indicator of its target audience, approximately 90% of Depop's user base is under the age of 34.
Company Context and Strategy
Etsy initially acquired Depop in 2021 for approximately $1.6 billion, as part of a "house of brands" strategy focused on integrating niche online marketplaces. However, Etsy has since divested from several of these acquisitions, including Elo7 in 2023 and Reverb in 2022, signaling a shift in its corporate strategy.
Kruti Patel Goyal, Etsy's chief executive, stated that the sale of Depop enables the company to concentrate exclusively on expanding its core marketplace and serving its primary buyers and sellers.
Conversely, eBay's chief executive, Jamie Iannone, stated that Depop is expected to achieve long-term growth by leveraging eBay's existing scale, complementary offerings, and operational capabilities.
eBay, headquartered in San Jose, California, plans to fund the acquisition in cash. Etsy, based in Brooklyn, New York, intends to utilize the proceeds for general corporate purposes.
Market Reaction
Following the announcement of the acquisition, both companies observed an increase in their share values in after-hours trading. Etsy's shares rose by nearly 15%, while eBay's shares increased by more than 7%.