In a major move within the online retail sector, eBay has announced an agreement to acquire the second-hand fashion marketplace Depop from Etsy for a substantial $1.2 billion in an all-cash transaction. This deal, set to finalize by mid-2026, underscores the escalating demand for sustainable and affordable clothing alternatives, as consumers increasingly turn away from traditional retailers.
Strategic Acquisition Details
The acquisition marks a significant shift, coming five years after Etsy purchased Depop for $1.6 billion. Under the terms, Depop will maintain its distinct name, brand identity, and platform, ensuring continuity for its user base. At the close of last year, Depop boasted an impressive three million active sellers and seven million active buyers, with nearly 90% of users under the age of 34, highlighting its strong appeal among younger demographics.
Leadership Perspectives on the Deal
eBay's CEO, Jamie Ianonne, emphasized the strategic value of this purchase, stating that it presents a prime opportunity to engage a younger audience. He remarked, "Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category. 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."
Peter Semple, CEO of Depop, expressed pride in the company's achievements, noting that the transaction is "testament to the significant growth we have delivered." Meanwhile, Etsy's chief executive, Kruti Patel Goyal, described the deal as "a positive next step for all involved," adding her confidence that Depop is "well-positioned for its next phase of growth as part of eBay."
Market Reaction and Broader Implications
Following the announcement, eBay's shares surged more than 7%, while Etsy's stock soared close to 15%, reflecting investor optimism about the transaction. This acquisition aligns with broader trends in the retail industry, where the popularity of used clothing has grown significantly in recent years. Consumers are increasingly seeking sustainable options that offer both affordability and style, driving platforms like Depop to the forefront of the fashion market.
The deal also highlights the competitive dynamics in online marketplaces, as companies vie to capture niche segments and expand their user bases. With Depop's strong social and community-driven approach, eBay aims to leverage these strengths to enhance its own offerings and drive future growth in the evolving digital commerce landscape.
