eBay is expanding its presence in the Gen Z market by acquiring the secondhand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash. The acquisition was announced on Wednesday and aligns with the growing popularity of used clothing among consumers interested in unique items that offer financial savings and promote sustainability.
eBay’s CEO, Jamie Iannone, expressed confidence that the acquisition will enhance Depop’s growth potential by leveraging eBay’s scale and operational capabilities. Depop, established in 2011 and acquired by Etsy five years ago for $1.6 billion, reported 7 million active buyers as of December 2025, with nearly 90% of those users under the age of 34. The platform also has over 3 million active sellers.
eBay, headquartered in San Jose, California, plans to fund the purchase entirely in cash. In utilizing the proceeds from the sale, Etsy, based in Brooklyn, New York, aims to bolster its core marketplace, engage in share repurchases, and pursue other general corporate initiatives.
The boards of both companies have unanimously approved the transaction, which is expected to finalize in the second quarter of the year. Importantly, Depop will maintain its brand, platform, and culture following the acquisition. Following the announcement, eBay shares saw a more than 7% increase, while Etsy shares rose nearly 15% in after-hours trading.
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