Etsy Sells Depop to eBay in $1.2bn Cash Deal

Published: 21 February 2026, The English Chronicle Desk, The English Chronicle Online

Online marketplace giant eBay has agreed to buy the popular second‑hand fashion app Depop from Etsy in a $1.2 billion cash deal, marking one of the biggest moves yet in the booming resale fashion sector. The agreement, approved by both companies’ boards and expected to close in the second quarter of 2026, aims to deepen eBay’s appeal to younger shoppers and expand its presence in the fast‑growing recommerce market.

Depop, which was founded in London in 2011 and has become particularly popular with Generation Z, reported nearly $1 billion in gross merchandise sales in 2025, with around 7 million active buyers, nearly 90 per cent under the age of 34. The platform also hosts more than 3 million active sellers worldwide.

The acquisition represents a strategic push by eBay to strengthen its foothold among digitally native consumers, particularly in fashion. eBay CEO Jamie Iannone said the combination of Depop’s “social‑forward” marketplace and eBay’s global scale will create “long‑term growth opportunities” and better serve buyers and sellers alike.

For Etsy, the sale allows the company to refocus on its core marketplace for handmade, vintage and unique goods after years of diversification. Etsy originally acquired Depop in 2021 for approximately $1.62 billion but faced slower growth and profitability pressures from the second‑hand fashion unit. Following the announcement, Etsy’s shares jumped more than 10 per cent, reflecting investor approval of the move.

Etsy officials said the proceeds from the sale of Depop will support general corporate purposes, share repurchases and further investment in the company’s primary marketplace. Despite selling at a lower price than its original purchase, the company believes the deal will allow for greater focus and efficiency in its operations.

Depop will retain its brand identity, platform and community under eBay’s ownership, and both companies highlighted plans to maintain its unique culture and continue developing the marketplace. eBay’s move into second‑hand fashion underscores broader consumer trends towards sustainable, affordable clothing and increased demand for peer‑to‑peer online commerce.

The English Chronicle will continue covering updates on the acquisition and what it means for the global e‑commerce landscape.

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