eBay to acquire Depop in $1.2B cash deal
Online marketplace eBay has agreed to acquire second-hand fashion platform Depop from Etsy for $1.2bn (£890m), the companies announced.
The all-cash transaction is expected to close by mid-year, five years after Etsy purchased Depop for $1.6bn (£1.18bn), News.Az reports, citing Sky News.
The move comes amid growing demand for pre-owned clothing, as shoppers increasingly seek sustainable and affordable alternatives to traditional retail. Founded in the UK in 2011, Depop will continue operating under its existing name, brand and platform, according to the companies.
At the end of last year, Depop had three million active sellers and seven million active buyers, nearly 90% of whom were under 34.
eBay Chief Executive Jamie Iannone said the acquisition offers an opportunity to strengthen the company’s appeal among younger consumers. He noted that Depop has established a trusted, socially driven marketplace with strong momentum in the resale fashion segment and said the platform is well-positioned for further growth under eBay’s ownership.
Depop CEO Peter Semple described the deal as recognition of the company’s growth, while Etsy CEO Kruti Patel Goyal called the agreement a positive step and expressed confidence in Depop’s future within eBay.
Following the announcement, eBay shares rose more than 7%, while Etsy stock climbed nearly 15%.
News.Az
By Nijat Babayev
