EBay has agreed to acquire the secondhand fashion marketplace Depop from Etsy for $1.2 billion in cash, the companies announced Wednesday. The deal marks a significant move for eBay to attract a younger customer base and expands its presence in the rapidly growing resale market.
The acquisition comes as demand for used clothing continues to rise, particularly among Gen Z consumers who prioritize affordability and sustainability. Depop, founded in 2011 and based in London, has become a popular platform for this demographic, offering a space to buy and sell unique items. As of December 31, 2025, Depop reported 7 million active buyers, with nearly 90% under the age of 34, and over 3 million active sellers, according to a joint release.
Etsy initially purchased Depop in 2021 for $1.6 billion, as part of a broader strategy to build a diversified portfolio of online marketplaces and compete with larger e-commerce players like Amazon. However, Etsy has since shifted its focus, deciding to concentrate on its core marketplace. “Selling Depop allows us to focus exclusively on the compelling opportunity we see in front of us,” said Etsy CEO Kruti Patel Goyal. “And to grow the Etsy marketplace in ways that matter most to our buyers and sellers.”
eBay CEO Jamie Iannone expressed confidence that Depop would thrive under eBay’s ownership, benefiting from the company’s scale and operational resources. “We are confident that as part of eBay, Depop will be even more well positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities,” Iannone stated.
The companies stated that Depop will retain its brand, platform, and culture following the acquisition. The transaction, which has been unanimously approved by the boards of both eBay and Etsy, is expected to close in the second quarter of the year. EBay, headquartered in San Jose, California, intends to fund the purchase with cash, while Etsy, based in Brooklyn, New York, plans to use the proceeds for general corporate purposes.
Financial markets reacted positively to the news. EBay’s shares rose more than 7% in after-hours trading, while Etsy’s stock soared nearly 15% following the announcement, according to CNBC reporting.
