NEW YORK (MNN); E-commerce giant eBay has agreed to acquire secondhand fashion platform Depop from Etsy in a cash deal valued at approximately $1.2 billion, the companies announced on Wednesday.
The acquisition reflects eBay’s strategy to strengthen its presence among Generation Z consumers and capitalize on the surging demand for pre-owned clothing. In recent years, resale fashion has gained momentum as shoppers increasingly seek affordable, distinctive items while also embracing environmentally conscious purchasing habits that reduce landfill waste.
eBay Chief Executive Officer Jamie Iannone said the transaction offers a significant opportunity to attract a younger customer base. He expressed confidence that Depop would achieve stronger long-term growth under eBay’s ownership, benefiting from the company’s scale, operational expertise, and complementary product offerings.
According to a joint statement, as of December 31, 2025, Depop had 7 million active buyers, nearly 90 percent of whom are under the age of 34, along with more than 3 million active sellers on its marketplace.
The deal comes five years after Etsy acquired Depop for $1.6 billion. Founded in 2011, Depop has built a strong reputation as a community-driven resale app popular among young consumers and independent sellers.
San Jose, California-based eBay said it intends to finance the transaction entirely in cash. Meanwhile, Brooklyn-based Etsy plans to use the proceeds for general corporate purposes, share buybacks, and reinvestment in its core marketplace operations.
The transaction has received unanimous approval from the boards of directors of both companies and is expected to close in the second quarter of the year, pending customary regulatory clearances.
Both firms confirmed that Depop will retain its brand identity, platform structure, and internal culture following the acquisition.
Following the announcement, eBay’s shares climbed more than 7 percent, while Etsy’s stock surged nearly 15 percent in after-hours trading.
