EBay has agreed to acquire Depop, the fashion resale marketplace, from Etsy for $1.2 billion in cash. The deal marks eBay's largest acquisition since 2019 and represents a strategic move to capture younger consumers who are increasingly drawn to sustainable fashion and peer-to-peer resale platforms.

The acquisition comes as eBay seeks to revitalize its marketplace by attracting Gen Z and millennial shoppers. Depop, known for its mobile-first approach and strong presence among 18-35 year-olds, has built a loyal following by focusing on vintage clothing and unique fashion finds. This demographic represents a key growth opportunity for eBay, which has traditionally served an older customer base.

The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals. Etsy acquired Depop in 2021 for $1.6 billion, making this sale a strategic divestment as the craft marketplace focuses on its core business. For eBay, the deal provides immediate access to Depop's 30 million users and its profitable peer-to-peer marketplace model.