The move comes nearly five years after Etsy acquired Depop for approximately $1.62 billion, effectively realizing a gain despite the initially high purchase price. eBay CEO Jamie Iannone described the acquisition as strategic, highlighting the strong engagement and loyalty of Gen Z and millennial users on the platform.
Depop, one of the leading resale fashion marketplaces, has built an active community of Gen Z and millennial users and is widely recognized for fostering a distinctive “recommerce” culture.
Etsy intends to use the proceeds from the sale to strengthen its core marketplace, while investors are also closely watching the company’s fourth-quarter earnings announcement, expected tomorrow, for further indications regarding its growth trajectory.