EBAY BUYS DEPOP FROM ETSY FOR $1.2 BILLION IN CASH

Bad Bunny just outsold every country artist in America. Young shoppers love secondhand apparel, and the sector is expected to grow three times faster than new clothing through 2027, according to McKinsey. eBay has not figured out how to talk to Gen Z yet. eBay Inc. and Etsy, Inc. today jointly announced that they have entered into a definitive agreement under which eBay will acquire Depop, a leading C2C fashion marketplace with deep recommerce roots and a highly-engaged Gen Z and Millennial customer base, for approximately $1.2 billion in cash. This is not about marketplaces anymore. This is about generational handoffs. Depop is a mobile-first, community-powered fashion marketplace experiencing strong momentum with annual gross merchandise sales (GMS) of approximately $1 billion in 2025, including nearly 60% year-over-year growth in the U.S. As of December 31, 2025 the marketplace had 7 million active buyers, nearly 90% of which are under the age of 34, and more than 3 million active sellers. The deal comes almost five years after Etsy bought Depop for roughly $1.62 billion. Etsy took a $420 million loss to get out of the Gen Z business. Fashion represents more than $10 billion in annual gross merchandise volume (GMV) for eBay and delivered 10% year-over-year GMV growth in the U.S. in 2025. This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape. While eBay remains one of the largest e-commerce platforms and is a significant player in peer-to-peer and secondhand selling, it suffers from being seen as a more traditional marketplace that lacks some of the edge of newer upstarts. eBay's problem is not inventory. It is brand perception. With 28% of US Gen Z aged 18 to 25 unable to save money and 32% spending 50% of their monthly income on rent, recommerce is emerging as a more affordable option for this cohort and is also more sustainable, aligning with the group's core values. Gen Z consumers are accelerating the growth of resale platforms such as Depop, Vinted, GOAT and Grailed, which allow them to access unique fashion options but can also provide them with an alternative income stream. According to WGSN Barometer data, Gen Z are selling their own pre-loved clothes to declutter (50%), for sustainability (33%) and to get extra money (56%). The music industry cracked this code first. Streaming made discovery social. TikTok made virality democratic. Fashion is catching up through platforms like Depop that combine commerce with community. From Q4 2024 to Q1 2025, the secondhand apparel marketplace Depop experienced a +12.0% brand equity lift among Gen Z adults. Brand equity reflects cultural momentum, not just sales. The secondhand fashion and luxury market is forecast to grow two to three times faster than the first-hand market through to 2027 as consumer appetite grows and scale and technology unlock profitability. Looking ahead, the secondhand market is expected to grow two to three times faster than the first-hand market from 2025 to 2027. Early signs are already visible: in the first quarter of 2025, as tariff discussions intensified, resale marketplace Depop's app downloads increased 125 percent over the previous quarter. Economic pressure creates cultural opportunity. 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. Wall Street rewards companies that stop fighting cultural gravity and start working with it. EBay is buying its way out of irrelevance. Depop gives them access to a generation that treats secondhand as first choice. The real question is whether a 30-year-old platform can absorb a culture-first community without killing what made it valuable in the first place.