eBay has announced plans to acquire the second-hand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash. The strategic move aims to tap into the burgeoning market for pre-owned clothing and attract a younger demographic.
Etsy stated the acquisition aligns with its strategy to focus on its core marketplace and use the proceeds for general corporate purposes. Depop, founded in 2011, boasts a user base heavily skewed towards younger consumers, with nearly 90% of its 7 million active buyers under the age of 34 as of December 2025.
eBay CEO Jamie Iannone expressed confidence that Depop's integration will foster long-term growth, leveraging eBay's scale and operational capabilities. The transaction, unanimously approved by both companies' boards, is expected to conclude in the second quarter. Depop will reportedly maintain its brand, platform, and culture post-acquisition.
Following the announcement, eBay shares saw a notable increase in after-hours trading, with Etsy shares experiencing a significant jump.