Etsy sells secondhand clothing marketplace Depop to eBay for $1.2B

Etsy has agreed to sell its secondhand clothing marketplace Depop to eBay for $1.2 billion in a deal that comes nearly five years after acquiring the platform for $1.62 billion during the pandemic when secondhand fashion apps were experiencing significant growth. The transaction represents a strategic shift for both companies as eBay looks to strengthen its position in the sustainable fashion space while Etsy focuses on its core marketplace of handmade and vintage goods. The sale price of $1.2 billion indicates a slight loss for Etsy compared to its original investment, though the company has likely benefited from Depop's growth since 2021. The deal comes at a time when the secondhand clothing market continues to expand with increasing consumer interest in sustainable fashion options, though the rapid growth seen during the pandemic has somewhat normalized in recent quarters.