Summary:
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eBay acquires Depop from Etsy for $1.2 billion, targeting young consumers with $1 billion in sales.
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Etsy suffers $400 million loss on Depop sale, refocusing on handmade market as eBay gains foothold.
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Depop to keep brand identity under eBay ownership, with shares rising for both companies after acquisition.
eBay has agreed to acquire British secondhand fashion app Depop from Etsy for $1.2 billion in cash, marking one of the biggest consolidations in the resale market to date.
The deal, expected to close in the second quarter of 2026, gives eBay a critical foothold with younger consumers — nearly 90% of Depop’s 7 million active buyers are under 34. Depop recorded roughly $1 billion in gross merchandise sales in 2025 and saw nearly 60% year-on-year growth in the U.S.
“Depop’s social-forward marketplace perfectly complements our scale,” eBay CEO Jamie Iannone said in a statement.
For Etsy, the sale marks a $400 million loss on its 2021 acquisition of Depop, which it purchased for $1.6 billion as part of a broader “House of Brands” strategy. The company says offloading Depop will allow it to refocus on its core handmade and craft marketplace.
Under the new ownership, Depop will maintain its brand identity and platform while leveraging eBay’s logistics and financial services infrastructure.
Shares in eBay rose 7% on the news, while Etsy stock surged more than 15% in after-hours trading.
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