eBay is making a major move to attract younger customers by acquiring a popular resale fashion platform.
The California-based online marketplace announced Wednesday it will purchase Depop from Etsy in an all-cash transaction worth approximately $1.2 billion. The acquisition represents eBay’s strategy to expand its reach among Generation Z consumers.
This transaction occurs during a surge in secondhand clothing popularity, as consumers increasingly seek distinctive items at lower prices while supporting environmental sustainability by keeping garments out of landfills.
eBay CEO Jamie Ianonne explained in a company statement that acquiring Depop presents a chance to engage a younger customer base.
“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,” Ianonne said.
According to the joint announcement, Depop’s platform boasted 7 million active purchasers as of December 31, 2025, with almost 90% being younger than 34 years old, plus over 3 million active vendors.
This acquisition comes five years following Etsy’s purchase of Depop for $1.6 billion. The mobile application launched in 2011.
The San Jose-based eBay confirmed it will finance the deal entirely with cash. Brooklyn-headquartered Etsy stated it will use the money for general business operations, ongoing stock buybacks, and investments in its primary marketplace.
Both companies’ boards have given unanimous approval for the deal, which is anticipated to finalize during the second quarter.
Company officials confirmed that Depop will maintain its current name, branding, platform structure, and corporate culture following the acquisition.
Wall Street responded positively to the announcement, with eBay stock climbing over 7% and Etsy shares jumping nearly 15% in after-hours trading.
