US online marketplace eBay has agreed to acquire second-hand fashion platform Depop from Etsy for approximately $1.2 billion (€1.0 billion) in cash, the companies announced on Wednesday.
The deal is aimed at expanding eBay’s reach among younger consumers and strengthening its presence in the rapidly growing resale clothing market.
Used fashion has gained popularity in recent years as consumers seek affordable, unique clothing options while also embracing sustainability and reducing textile waste. The acquisition positions eBay to tap further into this trend.
eBay Chief Executive Jamie Iannone said the move would help the company attract a younger demographic and support long-term growth.
“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,” Iannone said in a statement.
As of December 31, 2025, Depop had 7 million active buyers, nearly 90 per cent of whom are under 34 years old, along with more than 3 million active sellers, according to a joint release.
Depop was founded in 2011 and was acquired by Etsy in 2021 for $1.6 billion (€1.3 billion). The latest sale marks a strategic shift for Etsy, which said it plans to use the proceeds for general corporate purposes, continued share repurchases and investment in its core marketplace operations.
The transaction has been unanimously approved by the boards of both eBay and Etsy and is expected to close in the second quarter of 2026.
According to the companies, Depop will retain its name, brand, platform and culture following the acquisition.
Markets reacted positively to the announcement. eBay shares rose more than 7 per cent, while Etsy shares jumped nearly 15 per cent in after-hours trading.
The deal highlights increasing consolidation in the resale market as established e-commerce players compete for younger shoppers and position themselves within the expanding circular economy.
