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Etsy Acquires Musical Instrument Marketplace Reverb

Etsy has signed a definitive agreement to acquire Reverb, a marketplace for new, used and vintage music gear, for $275 million. Reverb will continue operating as a standalone business after the deal closes, and Founder and CEO David Kalt will retain his position until Etsy identifies a new leader for the business.

Reverb gives individuals, brick-and-mortar retailers and dealers access to a global audience interested in purchasing musical instruments, including the U.S., Canada, UK, France, Germany and Australia. The deal will give Etsy access to a new market through a company with a similar growth strategy and business model.

“There are a number of similarities between the levers of growth for Etsy and Reverb, such as improving search and discovery, making selling and buying easier, and building a global brand and user community,” said Josh Silverman, CEO of Etsy in a statement. “We have been successfully implementing these types of initiatives at Etsy for two years now, and are confident that we can similarly impact Reverb’s business. We look forward to welcoming Reverb’s talented employees to the Etsy family as we work to better serve our buyers and sellers and drive value for our stakeholders.”

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This isn’t the first time Etsy has purchased another marketplace: the retailer acquired A Little Market, a France-based web site for selling handmade goods, in 2014. However, the site was shut down in 2017 amid leadership changes and cost-cutting efforts at Etsy, according to The Verge.

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