Etsy sold its music-gear marketplace Reverb to investment firms last year, writing in its April 22, 2025 press release it would “focus on driving growth in the core Etsy marketplace, as well as its subsidiary Depop.” Now Etsy is selling its C2C fashion marketplace Depop – to eBay.
eBay will pay approximately $1.2 billion in cash, subject to certain purchase price adjustments, for Depop. Etsy had acquired Depop for $1.625 billion in 2021. It expects to close the acquisition deal in the second quarter of 2026 (sometime between April and June).
eBay explained its interest in the used-fashion marketplace in today’s press release: “The addition of Depop will accelerate eBay’s C2C strategy by deepening its reach with younger, fashion-forward consumers and expanding its presence in one of the most dynamic areas of resale. As part of eBay, Depop will benefit from eBay’s global scale and suite of capabilities, including its financial services, shipping solutions, and trusted experiences like Authenticity Guarantee to further accelerate growth and enhance the buyer and seller experience. eBay will also expand the visibility of Depop’s inventory, including through cross-listing opportunities, which will amplify global demand and unlock additional market opportunity.”
The companies shared that Depop had annual gross merchandise sales of approximately $1 billion in 2025; 7 million active buyers (nearly 90% of which are under the age of 34); and over 3 million active sellers.
Josh Silverman stepped down as CEO of Etsy in December.
eBay reports 4th quarter earnings today, and Etsy will report its 4th quarter earnings tomorrow (Thursday). Executives will likely discuss the acquisition during their respective earnings calls.
