Online seller eBay wants a bigger share of the Gen Z market.
The online seller has agreed to purchase second-hand fashion marketplace Depop from Etsy for about $US1.2 billion ($A1.7 billion) in cash, the companies said.
The deal comes at a time when used clothing has become increasingly popular, sought out by shoppers searching for unique items that cost less than new ones and keep the old stuff from heading to the landfill.
In a statement, eBay’s chief executive Jamie Iannone said the acquisition is an opportunity to capture a younger demographic.
“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,” Iannone said on Wednesday, US time.
As of December 31, 2025, Depop’s marketplace had seven million active buyers, nearly 90 per cent of which are under the age of 34, and more than three million active sellers, the joint release said.
The deal comes five years after Etsy bought Depop for $US1.6 billion ($A2.3 billion). The app was founded in 2011.
EBay, based in San Jose, California, said it intends to pay cash. Etsy, based in Brooklyn, New York, plans to use the proceeds for general corporate purposes, continued share repurchases and investment in its core marketplace, according to the release.
The transaction, which has been unanimously approved by eBay’s and Etsy’s boards, is currently expected to close in the second quarter, the companies said.
Depop is expected to retain its name, brand, platform, and culture, the companies said.
EBay’s shares rose more than seven per cent, while Etsy’s share soared close to 15 per cent in after-hours trading when the news was announced.