eBay Just Bought a Clothing Resale App With a ‘Cult Following’ for $1.2 Billion — Here’s Why
The company is acquiring Gen Z-favorite Depop from Etsy.
eBay has a Gen Z problem, and the only prescription is more Depop.
The 30-year-old company is buying the popular resale clothing app from Etsy for $1.2 billion to attract younger shoppers. Depop has a cult following among Generation Z, with 90% of its 7 million active buyers under 34. The timing also makes sense. Young shoppers love secondhand apparel, and the sector is expected to grow three times faster than new clothing through 2027, according to McKinsey.
Wall Street was bullish about the deal. Etsy’s stock jumped 15% in after-hours trading, while eBay rose 7%. The deal is expected to close in the second quarter of 2026.
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eBay has a Gen Z problem, and the only prescription is more Depop.
The 30-year-old company is buying the popular resale clothing app from Etsy for $1.2 billion to attract younger shoppers. Depop has a cult following among Generation Z, with 90% of its 7 million active buyers under 34. The timing also makes sense. Young shoppers love secondhand apparel, and the sector is expected to grow three times faster than new clothing through 2027, according to McKinsey.
Wall Street was bullish about the deal. Etsy’s stock jumped 15% in after-hours trading, while eBay rose 7%. The deal is expected to close in the second quarter of 2026.
Sign up for the Entrepreneur Daily newsletter to get the news and resources you need to know today to help you run your business better. Get it in your inbox.
