On February 18, eBay and Etsy announced that they have entered into a definitive agreement under which eBay will acquire Depop for approximately $1.2 billion in cash. The transaction includes certain purchase price adjustments and is expected to close in the second quarter of 2026. The deal has already been unanimously approved by the boards of directors of both companies.
The move represents a clear strategic decision to strengthen eBay’s consumer-to-consumer (C2C) business. Depop has achieved rapid growth in the recommerce space as a mobile-first, community-powered fashion marketplace. In 2025, the platform generated approximately $1 billion in annual gross merchandise sales (GMS), including nearly 60% year-over-year growth in the U.S. market.
As of December 31, 2025, Depop had 7 million active buyers, nearly 90% of whom are under the age of 34, as well as more than 3 million active sellers. Its strong connection with Gen Z and Millennial consumers is arguably its most valuable asset.
Jamie Iannone, Chief Executive Officer of eBay, commented: “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities. Fashion represents more than $10 billion in annual gross merchandise volume (GMV) for eBay and delivered 10% year-over-year GMV growth in the U.S. in 2025. 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. We’re excited to welcome the Depop team to eBay.”
For eBay, fashion is already a major category generating more than $10 billion in annual GMV. By integrating Depop—whose platform is built around a socially engaged community—eBay aims to deepen its presence in one of the most dynamic segments of the resale market.
Meanwhile, Etsy has made clear its intention to refocus on its core marketplace. Kruti Patel Goyal, Chief Executive Officer of Etsy, stated, “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. We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved.”
She continued, “We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”
Etsy plans to use the proceeds from the sale for general corporate purposes, continued share repurchases, and investment in its core marketplace—signaling a strategic preference for focus over diversification.
Peter Semple, Chief Executive Officer of Depop, also expressed optimism about the transition: “We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the U.S. and beyond. This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world. We’re very grateful to the Etsy team for their partnership in advancing Depop’s business and mission to make fashion circular.”
Following the completion of the transaction, Depop is expected to retain its name, brand, and platform. As part of eBay, the company will benefit from eBay’s financial services, shipping solutions, and trusted experiences such as Authenticity Guarantee, while also leveraging cross-listing opportunities to expand visibility and unlock additional global demand.
As the recommerce market enters a structural growth phase, this acquisition represents more than a simple portfolio reshuffle. Against the backdrop of value-driven consumption among Gen Z, growing interest in circular fashion, and a renewed appreciation for C2C transactions, the deal signals how major platforms are redefining their positioning in the evolving resale landscape.
The competitive frontier in fashion resale will increasingly hinge on the strength of youth-driven communities and the quality of digital experiences. How the integration of eBay and Depop reshapes that landscape will be closely watched in the second half of 2026 and beyond.
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