NEW YORK (AP) — Online seller eBay wants a bigger share of the Gen Z market.

The online seller has agreed to purchase secondhand fashion marketplace Depop from Etsy for about $1.2 billion in cash, the companies said Wednesday.

The deal comes at a time when used clothing has become increasingly popular, sought out by shoppers searching for unique items that cost less than new ones and keep the old stuff from heading to the landfill.

In a statement, eBay’s CEO Jamie Ianonne said that the acquisition is an opportunity to capture a younger demographic.

“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,” Ianonne said.

As of Dec. 31, 2025, Depop’s marketplace had 7 million active buyers, nearly 90% of which are under the age of 34, and more than 3 million active sellers, the joint release said.

The deal comes five years after Etsy bought Depop for $1.6 billion. The app was founded in 2011.

EBay, based in San Jose, California, said it intends to pay cash. Etsy, based in Brooklyn, New York, plans to utilize the proceeds for general corporate purposes, continued share repurchases and investment in its core marketplace, according to the release.

The transaction, which has been unanimously approved by eBay’s and Etsy’s boards, is currently expected to close in the second quarter, the companies said.

Depop is expected to retain its name, brand, platform, and its culture, the companies said.

EBay’s shares rose more than 7%, while Etsy’s share soared close to 15% in after-hours trading when the news was announced.