eBay Acquires Depop for $1.2 Billion to Attract Gen Z Shoppers
Published 18 February 2026
Highlights
- eBay is acquiring the second-hand fashion app Depop from Etsy for $1.2 billion in an all-cash deal.
- The acquisition aims to help eBay capture a younger demographic, with nearly 90% of Depop's users under 34.
- Depop will retain its brand and operations, aligning with eBay's strategy to expand in the re-commerce sector.
- Etsy's decision to sell Depop is part of a broader strategy to refocus on its core marketplace.
- The transaction is expected to close by mid-year, with both companies' boards unanimously approving the deal.
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Rewritten Article
Headline: eBay Acquires Depop for $1.2 Billion to Attract Gen Z Shoppers
In a strategic move to capture the burgeoning market of Gen Z shoppers, eBay has announced its acquisition of Depop, a popular second-hand fashion app, from Etsy for $1.2 billion. This all-cash transaction, expected to finalize by mid-year, underscores eBay's ambition to expand its footprint in the rapidly growing re-commerce sector.
Targeting a Younger Demographic
Depop, founded in the UK in 2011, has become a favorite among younger consumers seeking sustainable and affordable fashion alternatives. With nearly 90% of its seven million active buyers under the age of 34, the platform offers a unique opportunity for eBay to engage with a demographic that prioritizes sustainability and individuality in their shopping habits. Jamie Ianonne, eBay's CEO, expressed confidence that Depop's integration will enhance eBay's offerings, stating, "We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth."
Etsy's Strategic Shift
Etsy's decision to sell Depop marks a significant pivot in its business strategy. Having acquired Depop in 2021 for $1.6 billion as part of a broader "House of Brands" initiative, Etsy is now refocusing on its core marketplace. Kruti Patel Goyal, Etsy's CEO, emphasized the importance of concentrating on opportunities that align with Etsy's primary mission, saying, "Selling Depop allows us to focus exclusively on the compelling opportunity we see in front of us."
Market Reactions and Future Prospects
The announcement of the acquisition has been met with positive market reactions, with Etsy's share price rising by over 15% and eBay's by nearly 7% in after-hours trading. Both companies have received unanimous approval from their boards for the transaction, which is expected to close in the second quarter of the year.
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Scenario Analysis
The acquisition of Depop by eBay could significantly impact the online marketplace landscape, particularly in the re-commerce sector. By tapping into Depop's established user base of young, sustainability-conscious consumers, eBay is well-positioned to enhance its appeal among Gen Z shoppers. This move could also prompt other major players in the e-commerce industry to explore similar acquisitions or partnerships to capture this valuable demographic.
For Etsy, the sale of Depop represents a strategic realignment towards its core business, potentially allowing it to strengthen its position in the niche market of handcrafted and unique goods. As Etsy refocuses its efforts, it may explore new ways to innovate and differentiate itself from competitors like Amazon and Shein, which have been gaining traction with their low-cost offerings.
Overall, the successful integration of Depop into eBay's operations could set a precedent for future acquisitions in the re-commerce space, highlighting the growing importance of sustainability and second-hand shopping in the digital retail landscape.
In a strategic move to capture the burgeoning market of Gen Z shoppers, eBay has announced its acquisition of Depop, a popular second-hand fashion app, from Etsy for $1.2 billion. This all-cash transaction, expected to finalize by mid-year, underscores eBay's ambition to expand its footprint in the rapidly growing re-commerce sector.
Targeting a Younger Demographic
Depop, founded in the UK in 2011, has become a favorite among younger consumers seeking sustainable and affordable fashion alternatives. With nearly 90% of its seven million active buyers under the age of 34, the platform offers a unique opportunity for eBay to engage with a demographic that prioritizes sustainability and individuality in their shopping habits. Jamie Ianonne, eBay's CEO, expressed confidence that Depop's integration will enhance eBay's offerings, stating, "We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth."
Etsy's Strategic Shift
Etsy's decision to sell Depop marks a significant pivot in its business strategy. Having acquired Depop in 2021 for $1.6 billion as part of a broader "House of Brands" initiative, Etsy is now refocusing on its core marketplace. Kruti Patel Goyal, Etsy's CEO, emphasized the importance of concentrating on opportunities that align with Etsy's primary mission, saying, "Selling Depop allows us to focus exclusively on the compelling opportunity we see in front of us."
Market Reactions and Future Prospects
The announcement of the acquisition has been met with positive market reactions, with Etsy's share price rising by over 15% and eBay's by nearly 7% in after-hours trading. Both companies have received unanimous approval from their boards for the transaction, which is expected to close in the second quarter of the year.
What this might mean
The acquisition of Depop by eBay could significantly impact the online marketplace landscape, particularly in the re-commerce sector. By tapping into Depop's established user base of young, sustainability-conscious consumers, eBay is well-positioned to enhance its appeal among Gen Z shoppers. This move could also prompt other major players in the e-commerce industry to explore similar acquisitions or partnerships to capture this valuable demographic.
For Etsy, the sale of Depop represents a strategic realignment towards its core business, potentially allowing it to strengthen its position in the niche market of handcrafted and unique goods. As Etsy refocuses its efforts, it may explore new ways to innovate and differentiate itself from competitors like Amazon and Shein, which have been gaining traction with their low-cost offerings.
Overall, the successful integration of Depop into eBay's operations could set a precedent for future acquisitions in the re-commerce space, highlighting the growing importance of sustainability and second-hand shopping in the digital retail landscape.
