Prime Highlights:
- eBay acquires Depop for €1bn, aiming to strengthen its appeal among younger, Gen Z shoppers.
- Depop will retain its name and community-led platform while benefiting from eBay’s scale and resources.
Key Facts:
- Depop has around 7 million active buyers, nearly 90% under 34, and 3 million active sellers.
- Following the announcement, eBay shares rose 7%, and Etsy shares jumped nearly 15%, signaling strong market confidence.
Background:
The online marketplace eBay has agreed to acquire fashion resale app Depop from Etsy in a €1bn ($1.2bn) cash deal, as it seeks to strengthen its appeal among younger shoppers and expand its presence in the fast-growing second-hand clothing market.
The companies confirmed the agreement on Wednesday, saying the transaction has been unanimously approved by both boards and is expected to close in the second quarter. The deal comes as second-hand fashion experiences significant growth.
Depop has built a loyal following since its launch in 2011, especially among younger users. By the end of 2025, the platform is projected to have up to 7 million active buyers, of whom 90% are under 34 years old, and approximately 3 million active sellers.
In a statement, eBay chief executive Jamie Iannone said the acquisition would help the company deepen its reach with a younger demographic. He added that Depop would benefit from eBay’s scale and operational expertise while continuing to develop its own community-led marketplace.
Depop is expected to retain its name, brand, and platform after the deal closes.
For Etsy, which bought Depop five years ago for $1.6bn, the sale provides fresh capital. The Brooklyn-based company said it plans to use the proceeds for general corporate purposes, share repurchases, and investment in its core marketplace business.
Investors reacted positively to the announcement. After the announcement, eBay’s shares jumped more than 7% in after-hours trading, while Etsy’s rose nearly 15%.
The market seemed to respond positively, signaling confidence that the deal could help both companies pursue their growth plans.