eBay Acquires Depop from Etsy in $1.2 Billion Cash Deal
eBay has officially announced its acquisition of Depop from Etsy for $1.2 billion in cash. This all-cash transaction is expected to finalize by mid-2023. The deal marks a significant shift in the e-commerce landscape, particularly within the second-hand fashion sector.
Details of the Acquisition
This acquisition comes shortly after Etsy had purchased Depop for $1.6 billion five years ago. The renewed interest in sustainable fashion has made platforms like Depop increasingly popular among consumers looking for eco-friendly options.
Background of Depop
- Founded: 2011 in the UK
- Active Sellers: 3 million
- Active Buyers: 7 million
- Demographics: Nearly 90% of users are under the age of 34
Depop has established itself as a trusted marketplace, primarily targeting a younger audience interested in “pre-loved” fashion. eBay’s CEO, Jamie Ianonne, expressed that this acquisition represents a valuable opportunity to engage with this demographic.
Statements from Leadership
Jamie Ianonne stated, “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category.” He believes that, under eBay’s umbrella, Depop will substantially benefit from enhanced operational capabilities and resources for long-term growth.
Peter Semple, CEO of Depop, highlighted that this transaction reflects the company’s significant growth achievements. He anticipates a bright future for Depop as part of eBay.
Market Reaction
The market responded positively to the acquisition news. eBay’s shares rose by over 7%, indicating investor confidence in the deal. Etsy, on the other hand, saw its shares increase by nearly 15%, reflecting optimism about the transaction’s potential benefits.
Overall, this strategic acquisition positions eBay to strengthen its foothold in the fast-growing second-hand fashion market. As consumer preferences shift towards sustainable options, eBay aims to leverage Depop’s robust platform to capture new market opportunities.
