eBay Inc. to Acquire Depop from Etsy, Inc. for $1.2 Billion

In a significant move within the global recommerce landscape, eBay Inc. has entered into a definitive agreement to acquire Depop from Etsy, Inc. for approximately $1.2 billion in cash, subject to purchase price adjustments. The transaction marks a strategic expansion of eBay’s consumer-to-consumer (C2C) model, particularly within the fast-growing secondhand fashion segment.

Depop, a mobile-first and community-driven fashion resale marketplace, generated approximately $1 billion in gross merchandise sales (GMS) in 2025. The platform reported nearly 60% year-over-year growth in the U.S., with 7 million active buyers and more than 3 million active sellers as of year-end 2025. Notably, nearly 90% of its buyers are under the age of 34, underscoring its strong resonance with Gen Z and Millennial consumers.

Strengthening eBay’s Fashion and C2C Focus

Fashion represents more than $10 billion in annual gross merchandise volume (GMV) for eBay, delivering 10% year-over-year GMV growth in the U.S. in 2025. The acquisition of Depop enhances eBay’s presence in one of its fastest-growing focus categories, enabling deeper engagement with younger, fashion-forward audiences.

Jamie Iannone, Chief Executive Officer of eBay, emphasized that Depop’s social-first marketplace and strong brand identity complement eBay’s global scale, operational infrastructure, and trusted buyer protections such as Authenticity Guarantee. As part of eBay, Depop will benefit from expanded financial services, shipping solutions, and cross-listing opportunities that increase global inventory visibility.

Etsy Refocuses on Core Marketplace

For Etsy, the transaction represents a strategic realignment. CEO Kruti Patel Goyal noted that the sale enables the company to focus exclusively on driving sustainable growth within its primary marketplace. Etsy intends to use the proceeds for general corporate purposes, continued share repurchases, and reinvestment in its core platform.

While Depop will retain its brand identity, culture, and platform following the closing, the move signals Etsy’s commitment to strengthening its differentiated position in creative goods and handcrafted commerce.

Transaction Timeline and Market Impact

The acquisition has been unanimously approved by both companies’ Boards of Directors and is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions. eBay plans to fund the deal with cash on hand.

The transaction underscores accelerating consolidation within the resale economy, where scale, logistics capabilities, and digital engagement are becoming critical competitive differentiators. As recommerce continues to expand globally, the integration of Depop into eBay’s ecosystem positions the combined entity to capture a larger share of younger consumers and the evolving circular fashion market.