Etsy is buying the fashion resale app Depop for $1.6 billion.

The acquisition is the latest to underscore the skyrocketing popularity of secondhand fashion platforms amid the pandemic.

Daily Business Briefing

June 2, 2021Updated June 2, 2021, 8:13 a.m. ET

The acquisition is the latest to underscore the skyrocketing popularity of secondhand fashion platforms amid the pandemic.

Here’s what’s happening in markets today.Many more people in cities lack broadband access than in rural areas.Catch up: Warner Bros. Discovery will be the new name of the merged company.

A Depop pop-up store in London in 2019.Credit…avid M. Benett/Getty Images

Depop, the fashion resale marketplace beloved by Generation Z, will be acquired by Etsy for $1.6 billion, the two companies announced on Wednesday.

The cash deal, which is expected to close by the third quarter of this year, underscores the growing influence of clothing resale platforms. More shoppers are turning to the secondhand market for something cheaper and — potentially — greener as the overproduction of clothing increasingly adds to landfills.

The trend appears to have been accelerated by the pandemic as more shoppers looked to declutter wardrobes, earn cash by selling their old clothes or set up fashion customization businesses from their bedrooms.

Investor appetite is also on the rise. Last month, Europe’s largest secondhand fashion marketplace, Vinted, raised 250 million euros in a funding round that valued the start-up at EUR3.5 billion ($4.26 billion), while in the United States companies such as ThredUp and Poshmark have gone public this year.

Depop, which was founded in 2011, has been particularly successful in building a marketplace for younger consumers, who are adopting secondhand fashion faster than any other group. Ninety percent of its users are under 26, with 30 million users across 150 countries. The platform is particularly known for its vintage clothes and streetwear — and for creating a new cohort of online influencers famous for selling their wares.

“We are simply thrilled to be adding Depop — what we believe to be the resale home for Gen Z consumers — to the Etsy family,” said the Etsy chief executive, Josh Silverman.

He said he believed the platform had “significant potential to further scale” and said that he saw “significant opportunities for shared expertise and growth synergies” for Etsy’s apparel sector, which was valued at $1 billion last year.

According to the Boston Consulting Group, the global market for pre-owned apparel is worth up to $40 billion a year — about 2 percent of the total apparel market. It is expected to grow 15 to 20 percent annually for the next five years.

The transaction is expected to close in the third quarter of 2021, subject to antitrust reviews in Britain and the United States.

Travelers at Dallas Fort Worth International Airport in May. Air travel has been expanding, raising the demand oil.Credit…Nitashia Johnson for The New York Times

Oil

Oil prices climbed higher on Wednesday with futures continuing at their highest since late 2018. West Texas Intermediate, the U.S. benchmark crude, rose 1 percent to $68.40 a barrel.

On Tuesday, Organization of the Petroleum Exporting Countries and allied producers such as Russia quickly met and agreed to continue their plan of gradually easing oil production curbs. OPEC also noted that oil demand was “showing clear signs of improvement” and stockpiles were declining as vaccine rollouts sped by the economic recovery in most parts of the world.

Stocks

U.S. stock futures were little changed while most European stock indexes were higher. The Stoxx Europe 600 was 0.2 percent stronger as gains in the energy and consumer sectors outweighed losses at utilities companies and semiconductor manufacturers.

The Hang Seng Index in Hong Kong closed 0.6 percent lower and the Nikkei 225 in Japan was 0.5 percent higher.

Recent economic data has pointed to a strengthening economic recovery, but investors are closely watching inflation data for signs that it might not be transitory and would require central banks to take action to limit it. On Wednesday, the Organization for Economic Cooperation and Development said that the annual inflation rate across its 38 member countries rose to 3.3 percent in April 2021, compared with 2.4 percent in March. The jump was fueled by an increase in energy prices of 16.3 percent, the highest rate since September 2008.

Elsewhere in markets

AMC shares surged nearly 30 percent in premarket trading after the movie-theater chain said it raised $230.5 million by selling shares to Mudrick Capital Management. AMC’s share price has already climbed from $2.01 in early January to $32.04, raising its market value of $16 billion. The company has been able to take advantage of retail investors snapping up shares (along with other “meme stocks”) and raise more capital to help it weather the pandemic.

Employees of Verizon put away traffic cones after installing fiber optic cables on 138th Street and Park Avenue in the Mott Haven neighborhood of the Bronx, New York, last week.Credit…Desiree Rios for The New York Times

Veterans of the nation’s decade-long efforts to extend the broadband footprint worry that President Biden’s new infrastructure plan carries the same bias of its predecessors: Billions will be spent to extend the internet infrastructure to the farthest reaches of rural America, where few people live, and little will be devoted to connecting millions of urban families who live in areas with high-speed service that they cannot afford.

There is a political and economic logic to devoting billions of taxpayer dollars to bringing broadband to the rural communities that make up much of former President Donald Trump’s political base, which Mr. Biden wants to win over. But some critics worry that a capital-heavy rural-first strategy could leave behind urban America, which is more populous, diverse and productive, Eduardo Porter reports for The New York Times.

About 81 percent of rural households are plugged into broadband, compared with about 86 percent in urban areas, according to Census Bureau data. But the number of urban households without a connection, 13.6 million, is almost three times as big as the 4.6 million rural households that don’t have one.

Connecting urban families does not require laying thousands of miles of fiber optic cable through meadows and glens. In cities, telecom companies have already installed a lot of fiber and cable. Extending broadband to unserved urban households, most of them in low-income neighborhoods and often home to families of color, typically requires making the connection cheaper and more relevant.

The new media company that would combine WarnerMedia and Discovery has a name: Warner Bros. Discovery. David Zaslav, the executive who will run the combined companies if the merger is approved by regulators, announced the name at a town-hall-style meeting on Tuesday with WarnerMedia employees in Burbank, Calif. In his first opportunity to introduce himself to his prospective employees, Mr. Zaslav, who has been in charge of Discovery since 2007, spoke with the WarnerMedia chief executive Jason Kilar from the stage of the Steven J. Ross Theater on the Warner Bros. lot. The two executives did not mention the future of Mr. Kilar, who has retained a legal team to negotiate his exit from the company.

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