eBay's Depop Acquisition Approved
Britain's CMA Clears eBay's $1.2 Billion Takeover of Depop to Boost Youth Appeal
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Key Points
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Depop's user metrics around the time of the deal show seven million active buyers, more than three million active sellers, and about 90% of buyers under 34, with gross merchandise value near $1 billion in 2025.
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Depop is expected to retain its name, brand and standalone platform after the acquisition by eBay.
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The transaction is an all-cash deal valued at about $1.2 billion.
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Britain's CMA cleared the deal in its Phase 1 review, deciding not to refer it to a Phase 2 probe; the CMA began a formal review in June and sought input from interested parties, with a Phase 1 conclusion deadline noted as August 6.
Britain's Competition and Markets Authority has cleared eBay's planned $1.2 billion takeover of Depop, removing one of the final hurdles to close the deal. Value Added Resource reported the CMA approved the acquisition without referring it to a deeper Phase 2 probe.
The deal would hand eBay ownership of Depop from Etsy, the handmade marketplace that bought Depop in 2021. eBay aims to use Depop to win over younger shoppers in the fast-growing second-hand fashion market, according to Fashion Network.
CMA Clears Deal After Phase 1 Review
The CMA launched a formal review in June and asked outside parties to weigh in. A Phase 1 decision deadline of August 6 was set. The regulator concluded its review without escalating to a lengthier Phase 2 investigation, according to Value Added Resource.
A Phase 2 review would have added months of scrutiny and could have blocked or reshaped the deal. By stopping at Phase 1, the CMA signaled it found no serious competition concerns. Fashion Network called the clearance the removal of "one of the final hurdles" before the deal can close.
Depop's Gen Z Numbers Made It a Target
Depop is a mobile-first resale app built around social discovery. About 90% of its buyers are under 34. The platform has seven million active buyers and more than three million active sellers. Its gross merchandise value — the total worth of goods sold — hit nearly $1 billion in 2025.
Those numbers explain eBay's interest. eBay's core user base skews older, and the company has struggled to attract younger shoppers. Depop gives it a ready-made Gen Z community, according to Fashion Network.
eBay Plans to Keep Depop Running Separately
Depop will keep its name, brand, and standalone platform after the acquisition closes. eBay does not plan to fold it into its main marketplace. Instead, eBay wants to plug Depop into its global payments, shipping, and authentication tools to speed up its growth.
eBay also sees room to cross-list Depop items on its broader platform, giving sellers wider reach. The all-cash deal is worth about $1.2 billion, Value Added Resource reported.
Etsy Moves On From Its Depop Experiment
Etsy bought Depop in 2021 for around $1.6 billion, betting it could expand beyond handmade and vintage goods. The sale at $1.2 billion marks a loss on that bet. Etsy said it will use the proceeds for general corporate purposes and share buybacks.
The divestiture lets Etsy refocus on its core marketplace for handmade, vintage, and creative products, according to Fashion Network. For eBay, the CMA green light brings the company one step closer to closing a deal that could reshape how it competes in fashion resale.
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