eBay Acquires Depop from Etsy for $1.2 Billion

eBay has agreed to acquire the secondhand fashion marketplace Depop from Etsy for $1.2 billion in cash, a move aimed at expanding its appeal to younger shoppers amid the rising popularity of used clothing. The companies announced the deal on Wednesday, with the transaction expected to close in the second quarter of this year after unanimous approval from both boards.

The acquisition positions eBay to deepen its presence in the fast-growing recommerce sector, where preowned items like fashion are increasingly sought for their affordability, uniqueness, and environmental benefits. Depop, founded in 2011, specializes in secondhand apparel and has built a strong following among Gen Z and millennials. As of December 31, 2024, the platform boasted 7 million active buyers, nearly 90 percent of whom are under 34, along with more than 3 million active sellers. In 2024, Depop reported $1 billion in gross merchandise sales, with U.S. sales rising 60 percent from the previous year.

For eBay, based in San Jose, California, the purchase represents a strategic push into dynamic areas of resale. The company has emphasized specialty categories such as luxury goods, auto parts, and preowned items...