EBay Inc. has agreed to acquire Depop — a consumer-to-consumer fashion marketplace with re-commerce roots and a Gen Z and Millennial customer base — for approximately $1.2 billion in cash.

The agreement, reached with Etsy Inc., which owns Depop, was announced Wednesday and is subject to certain purchase price adjustments.

Depop is a mobile-first, community-powered fashion marketplace for secondhand fashion with annual gross merchandise volume of approximately $1 billion last year. The company also indicated it had nearly 60 percent year-over-year growth in the U.S. As of Dec. 31, the marketplace had seven million active buyers, nearly 90 percent under the age of 34, and more than 3 million active sellers.

EBay, a huge e-commerce marketplace founded in 1995, indicated that the purchase of Depop will accelerate its C2C strategy by deepening its reach with younger, fashion-forward consumers and expanding its presence in resale. Depop will benefit from eBay’s global scale and capabilities, including financial services, shipping solutions and its Authenticity Guarantee program. The platform plans to expand the visibility of Depop’s inventory, including through cross-listing opportunities.

EBay intends to fund the transaction with cash on hand. And Etsy plans to utilize the proceeds for general corporate purposes, continued share repurchases, and investment in its core marketplace.

The transaction is expected to close in the second quarter, subject to certain closing conditions and receipt of required regulatory approvals. Depop is expected to retain its name, brand, platform and “complementary culture,” eBay said.

“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings and operational capabilities,” said Jamie Iannone, chief executive officer of eBay, in a statement. “A key C2C driver, fashion represents more than $10 billion in annual gross merchandise volume for eBay and delivered 10 percent 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 re-commerce landscape. We’re excited to welcome the Depop team to eBay, and look forward to building on what makes them unique — their brand, culture and community — to deliver compelling benefits to buyers and sellers.”

Kruti Patel Goyal, CEO of Etsy, said: “We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers. We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved.”

Also on Wednesday, eBay reported that its revenue for the fourth quarter, which ended Dec. 31, rose 15 percent to $2.97 billion from $2.6 billion a year ago. Income from operations rose to $601 million, up from $543 million. Gross merchandise value was $21.2 billion, up 10 percent.

Net income from continuing operations was $528 million, down from $679 million a year earlier.

For all of 2025, eBay’s revenues rose to $11.1 billion from $10.28 billion in the year-ago period. Operating income slipped to $2.28 billion from $2.32 billion. And net income rose to $2.03 billion from $1.98 billion in 2024.

Iannone said: “2025 was a milestone year for eBay, and our results reflect the strength of our strategy and the disciplined execution behind it. We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in re-commerce. As we continue to harness AI to elevate the customer experience worldwide, eBay is in the strongest position it has been in years.”