Second-hand fashion platform Depop to be sold to eBay
Online retailer eBay is looking to capture a larger share of the Gen Z market.
The online retailer has agreed to buy second-hand fashion marketplace Depop from Etsy for about US$1.2 billion ($1.7 billion) in cash, the companies said.
The deal comes at a time when used clothing is increasingly popular, with shoppers looking for unique items that cost less than new ones and prevent old items from ending up in landfill.
eBay’s chief executive Jamie Iannone said in a statement that the acquisition was an opportunity to capture a younger demographic.
“We are confident that by becoming part of eBay, Depop will be even better positioned for long-term growth by leveraging our scale, complementary offerings and operational capabilities,” Iannone said in a statement on Wednesday US time.
The joint statement stated that as of December 31, 2025, there are seven million active buyers and more than three million active sellers in the Depop market, approximately 90 percent of whom are under the age of 34.
The deal comes five years after Etsy acquired Depop for US$1.6 billion ($2.3 billion). The application was founded in 2011.
EBay, based in San Jose, Calif., said it plans to pay in cash. Brooklyn, New York-based Etsy plans to use the proceeds for general corporate purposes, continue share buybacks and invest in the core market, according to the statement.
The transaction, which was unanimously approved by eBay and Etsy’s boards of directors, is now expected to close in the second quarter, the companies said.
Depop is expected to maintain its name, brand, platform and culture, the companies said.
EBay’s shares rose more than 7 percent in the hours when the news was announced, while Etsy’s shares rose nearly 15 percent in after-hours trading.
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