eBay is buying secondhand fashion marketplace Depop from Etsy in a deal valued at about $1.2 billion in cash, the companies said Wednesday. eBay framed the move as a way to expand its reach among younger online shoppers as demand for used clothing continues to grow.
The purchase comes after Etsy already acquired Depop five years earlier, when it bought the app for $1.6 billion. Depop was founded in 2011, and eBay said the transaction will help it gain a bigger share of the Gen Z market.
In a statement, eBay Chief Executive Jamie Ianonne said the acquisition would position Depop for “long-term growth” under eBay, citing what he described as eBay’s scale, complementary offerings and operational capabilities. Ianonne said, “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.”
eBay and Etsy said that as of Dec. 31, 2025, Depop’s marketplace had 7 million active buyers, with nearly 90% under the age of 34. They also said Depop had more than 3 million active sellers in that period.
Both companies said their boards unanimously approved the transaction. eBay said it intends to pay cash, while Etsy said it plans to use the proceeds for general corporate purposes, including continued share repurchases and investment in its core marketplace.
The companies said the deal is currently expected to close in the second quarter. They also said Depop is expected to retain its name, brand, platform and culture after the transaction.
After the announcement, eBay’s shares rose more than 7%, while Etsy’s shares climbed close to 15% in after-hours trading.