eBay Buys Depop for $1.2bn: Online Fashion Deal Explained | City A.M.
eBay has agreed to acquire the online fashion marketplace Depop for $1.2 billion in cash, a move that marks a significant shift for both companies and signals eBay’s push to attract a younger consumer base.
The deal, announced on Tuesday and expected to close in the second quarter of 2026, comes less than five years after Etsy purchased Depop for $1.62 billion in June 2021. Etsy, which had been pursuing a “house of brands” strategy, will now refocus on its core marketplace, according to a statement from CEO Kruti Patel Goyal.
“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” Goyal said.
Depop, known for its mobile-first, community-powered platform, has experienced rapid growth, particularly among Gen Z and Millennial shoppers. In 2025, the marketplace generated approximately $1 billion in gross merchandise sales, representing nearly 60% year-over-year growth in the U.S. As of December 31, 2025, Depop had 7 million active buyers, with nearly 90% under the age of 34, and over 3 million active sellers.
eBay CEO Jamie Iannone expressed confidence that Depop would thrive under eBay’s ownership, benefiting from the company’s scale, complementary offerings, and operational capabilities. “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category,” Iannone stated. “We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth.”
The acquisition is expected to bolster eBay’s presence in the fashion resale market, which already represents over $10 billion in annual gross merchandise volume and delivered 10% year-over-year growth in the U.S. In 2025.
Etsy’s decision to sell Depop follows a broader dismantling of its “house of brands” strategy. The company previously sold Reverb, a musical instrument marketplace, in 2025 and Elo7, a Brazilian crafts platform, in 2023. The sale of Depop will allow Etsy to concentrate on its core marketplace and drive sustainable growth, the company said.
Investors reacted positively to the news, with Etsy’s stock price surging 17% on Tuesday. EBay’s stock also rose, increasing by 7% alongside the release of its fourth-quarter earnings report. EBay reported an 8% increase in revenue for the full year 2025.
The transaction has been unanimously approved by both boards and is subject to regulatory approvals and customary closing conditions. Depop will retain its brand, platform, and culture following the acquisition.