Online retail giant eBay is set to acquire popular secondhand fashion platform Depop in a strategic move to capture a larger share of the Gen Z market.
The deal, announced on Wednesday, will see eBay purchase Depop from Etsy for approximately $1.2 billion in cash.
This acquisition capitalises on the surging popularity of pre-owned clothing, driven by consumers seeking unique, affordable items and a more sustainable approach to fashion.
eBay CEO Jamie Iannone stated the acquisition offers a prime opportunity to attract a younger demographic. He added: "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."
As of Dec. 31, 2025, Depop's marketplace had 7 million active buyers, nearly 90% of which are under the age of 34, and more than 3 million active sellers, the joint release said.
The deal comes five years after Etsy bought Depop for $1.6 billion. The app was founded in 2011.
EBay, based in San Jose, California, said it intends to pay cash. Etsy, based in Brooklyn, New York, plans to utilize the proceeds for general corporate purposes, continued share repurchases and investment in its core marketplace, according to the release.
The transaction, which has been unanimously approved by eBay’s and Etsy’s boards, is currently expected to close in the second quarter, the companies said.
Depop is expected to retain its name, brand, platform, and its culture, the companies said.
EBay's shares rose more than 7%, while Etsy's share soared close to 15% in after-hours trading when the news was announced.
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