eBay Snags Depop From Etsy for $1.2B — a $400M Haircut
eBay is buying secondhand fashion app Depop from Etsy at a steep discount to chase younger shoppers.
eBay just struck a deal to buy Depop, the secondhand clothing marketplace, from Etsy for roughly $1.2 billion in cash. That's a notable markdown — Etsy paid $1.6 billion for the app back in 2021, eating a $400 million loss on the flip.
The move signals eBay's push to win over younger users, a demographic Depop has cultivated with its Gen Z-friendly resale platform. Secondhand fashion apps surged during the pandemic era, and Depop carved out a loyal following among trend-conscious sellers and buyers.
Wall Street loved the news — but for Etsy, not eBay. ETSY stock surged more than 17% in after-hours trading, suggesting investors see the divestiture as a smart move to shed an underperforming asset and refocus.
The all-cash deal marks one of eBay's biggest acquisitions in recent years.