eBay (EBAY) on Wednesday said it would buy C2C fashion marketplace firm Depop from Etsy (ETSY) for about $1.2 billion in cash, as the e-commerce company tries to deepen its hold in the resale space.
Shares of eBay jumped 9% in extended trading on Wednesday after the company posted a strong fourth-quarter beat and forecast current-quarter revenue and profit above Wall Street estimate.
Depop is a platform where anyone can buy, sell, explore and discover second-hand fashion. The company had annual gross merchandise sales (GMS) of about $1 billion in 2025, including nearly 60% year-over-year growth in the U.S.
“The addition of Depop will accelerate eBay’s C2C strategy by deepening its reach with younger, fashion-forward consumers and expanding its presence in one of the most dynamic areas of resale,” eBay said, adding that the deal would help the company attract more Gen Z and Millennial customer base.
eBay said it would fund the transaction with cash on hand, while Etsy plans to utilize the proceeds for general corporate purposes, continued share repurchases, and investment in its core marketplace.
The transaction is expected to close in the second quarter of this year.