eBay's Bold Move: Acquiring Depop for $1.2 Billion to Capture the Young Market
In a strategic move to dominate the online retail landscape, eBay has announced its acquisition of Depop, the trendy secondhand fashion marketplace, for a staggering $1.2 billion. This bold purchase aims to tap into the growing demand for unique, affordable fashion among Gen Z shoppers, who are increasingly conscious of sustainability.
The acquisition, which was unanimously approved by eBay and Etsy's boards, is set to close in the second quarter. eBay's CEO, Jamie Ianonne, expressed confidence in Depop's potential, stating, 'We are confident that as part of eBay, Depop will thrive and benefit from our scale, complementary offerings, and operational capabilities.'
Depop, founded in 2011 and based in London, has already made a significant impact in the fashion industry. As of December 2025, it boasted 7 million active buyers, with nearly 90% under 34, and over 3 million active sellers. This acquisition marks a strategic shift for eBay, as it aims to capture a younger demographic and solidify its position in the secondhand fashion market.
The purchase comes as no surprise, considering eBay's history of acquiring complementary businesses. In 2021, Etsy bought Depop for $1.6 billion, but later decided to sell it to focus on its core platform. Now, eBay is stepping in to fill the void, offering a compelling opportunity for both brands.
The transaction will be funded entirely in cash, with eBay's shares rising 7% and Etsy's soaring 15% in after-hours trading. This move highlights eBay's commitment to staying relevant in the ever-evolving e-commerce industry, especially in the eyes of the younger generation.
