Business
Etsy grows up: Quirky marketplace Etsy has made a big acquisition, and quietly become a huge company in its own right

Etsy grows up: Quirky marketplace Etsy has made a big acquisition, and quietly become a huge company in its own right

This week Etsy, the online marketplace for homemade and vintage gifts and crafts, acquired Depop, the British social shopping app, for $1.6bn.

Sup, fellow kids

Etsy has managed to turn a relative small e-commerce platform for homemade trinkets and unique gifts into a multi-billion dollar e-commerce giant, which last year grew its revenues 111%, while making $350m of net profit. Fresh off of that growth bump from the pandemic, Etsy clearly wants to get a foothold with the younger generation — which is something that buying Depop gives them overnight, considering that 90% of Depop's 30 million strong userbase is under the age of 26.

With Gen Z consumers more focused on sustainability and the environmental impact of their shopping habits, Etsy is, on the surface at least, a good home for Depop.

Social shopping

Depop's user interface and individual profiles look remarkably similar to Instagram. Square photos, 3 x 3 grids, follower counts, double-tap for likes and many other features make Depop look more like a social media platform than a shopping website. The best complement you can pay a business idea is that, in hindsight, it looked so obvious. Depop fits that description perfectly. Social shopping? Duh.

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Some are starting to worry that Lilly, which for a short time vaulted into the trillion-dollar market cap club, may have hit a plateau.

business

Delta to increase bag fees by $10 on domestic flights this week, following JetBlue and United, as jet fuel surges

As the price of jet fuel surges amid the war in Iran, Delta Air Lines on Tuesday announced that it will hike its checked bag fees by $10 beginning this week.

Checking one bag on a domestic Delta flight will now cost $45, up from $35. A second bag will cost $55, up from $45, and a third will cost $200, up from $150. In a statement to Sherwood News, Delta issued the following announcement:

“For tickets purchased on or after April 8, Delta will increase fees for first and second checked bags by $10 and for a third checked bag by $50 on domestic and select short-haul international routes. These updates are part of Delta’s ongoing review of pricing across its business and reflect the impact of evolving global conditions and industry dynamics. Delta SkyMiles Medallion Members; customers traveling in First Class, Delta Premium Select and Delta One; active-duty military customers; and those with eligible co-branded Delta SkyMiles American Express Cards will continue to receive their allotment of complimentary checked bags.”

The move follows similar hikes by JetBlue and United Airlines last week. More are likely to come: when one major airline adjusts its fees, others tend to follow quickly behind. Delta last raised its bag fees in 2024, along with other major airlines.

Jet fuel prices were $4.69 a gallon on Monday, per the Argus US Jet Fuel Index. That’s up from the low $2 range for much of January.

business

Paramount reportedly receives $24 billion from Gulf funds to back its Warner Bros. takeover

Three Middle East sovereign wealth funds have agreed to back Paramount’s takeover of Warner Bros. Discovery to the tune of roughly $24 billion, according to Wall Street Journal reporting.

The company’s triumph over Netflix in the bidding war came thanks in part to financial backing from Oracle cofounder Larry Ellison, billionaire father of Paramount CEO David Ellison.

Saudi Arabia’s PIF, which last year led the $55 billion deal to take Electronic Arts private, will provide about $10 billion in the deal. The Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. is also involved.

According to the WSJ, the funds will not receive voting rights in the combined Paramount-Warner company. Those working on the deal don’t expect the Gulf funds’ involvement to spark any additional regulatory reviews.

The company’s triumph over Netflix in the bidding war came thanks in part to financial backing from Oracle cofounder Larry Ellison, billionaire father of Paramount CEO David Ellison.

Saudi Arabia’s PIF, which last year led the $55 billion deal to take Electronic Arts private, will provide about $10 billion in the deal. The Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. is also involved.

According to the WSJ, the funds will not receive voting rights in the combined Paramount-Warner company. Those working on the deal don’t expect the Gulf funds’ involvement to spark any additional regulatory reviews.

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