Published
Mon, Jul 22, 2019, 22:36
- Reverb will remain a standalone business after the transaction is finalized.
Etsy will purchase Reverb later this year.
The two companies signed an agreement for Etsy to acquire Reverb to the tune of $275 million. Reverb is an online marketplace for buying and selling both new and used musical gear, while Etsy offers the same function for what it calls "creative goods," like art, crafts, apparel and jewelry. A press release from Etsy promises that Reverb will remain a standalone business after the acquisition is finalized.
"Vibrant two-sided marketplaces are lightning in a bottle—there are only a handful of them operating at scale—and Reverb is one," says Etsy CEO Josh Silverman. "This transaction is a great strategic fit that firmly aligns with our mission of keeping commerce human. Reverb is the Etsy of musical instruments, with significant competitive advantages, and we see tremendous value and untapped potential in the business."
Reverb founder David Kalt will stay on as CEO through the merger, until Etsy's board chooses a new chief.
"With Etsy as our parent company, we’ll remain the marketplace built for the music community by a team of musicians and music lovers," Kalt said in a statement. "Your ability to buy, sell, learn, and connect on Reverb will not change. At the same time, we'll have added resources to continue growing and improving the Reverb community. Think of it like going to see your all-time favorite band and getting a surprise sit-in from another musician you admire."