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Etsy will sell Depop to eBay for about $1.2 billion, reversing its 2021 acquisition and refocusing on the Etsy marketplace.
Etsy is finally letting go of Depop.
The Brooklyn-based marketplace confirmed Wednesday it has agreed to sell Depop, the secondhand clothing platform beloved by Gen Z and millennials, to eBay for approximately $1.2 billion in cash. The deal marks a sharp reversal from 2021, when Etsy paid $1.62 billion for the UK-founded app as part of an ambitious “house of brands” strategy that never quite came together.
Investors didn’t mourn the loss. Etsy’s stock shot up more than 14% in after-hours trading once the news broke. eBay’s shares weren’t far behind, jumping over 7%.
Despite being over 30 years old, it’s looking for a total makeover. By bringing Depop into the fold, the company is gaining instant access to a massive audience of Gen Z and Millennial users who treat the app like a social media platform for vintage streetwear and Y2K fashion.
As of late 2025, Depop boasted seven million active buyers, with nearly 90% of them under the age of 34. For eBay, this isn’t just about more clothes; it’s about staying relevant.
“This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape,” eBay CEO Jamie Iannone said in a joint press release.
For Etsy, this is less a defeat and more a deliberate reset.
The company has spent the last few years quietly dismantling the empire it built during the pandemic e-commerce boom, offloading Brazilian marketplace Elo7 in 2023 and musical instrument platform Reverb last year. Depop is the latest, and biggest, exit.
“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,” Etsy CEO Kruti Patel Goyal said in a statement.
Not much, at least on the surface. Under the terms of the deal, Depop is expected to keep its name, branding, platform, and culture intact following the close.
eBay says it plans to invest in Depop and unlock synergies between the two platforms, including cross-listing opportunities, access to eBay’s shipping infrastructure, financial services, and its Authenticity Guarantee program. The deal has already been approved by both boards and is expected to officially close in the second quarter of 2026.
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Aminu Abdullahi is a B2C and B2B technology and finance writer with more than six years of experience covering enterprise IT, cybersecurity, cloud computing, artificial intelligence, fintech, business software, and emerging technologies. His work has appeared in publications including TechRepublic, eWEEK, Channel Insider, Geekflare, Enterprise Networking Planet, eSecurity Planet, CIO Insight, and Webopedia. With a technical background in computer science, he specializes in translating complex technology topics into clear, accessible content for business leaders and decision-makers.
