Looking to 2019, we’re reminded of an important milestone in the online marketplace industry when Etsy, the renowned global marketplace for unique and creative goods, acquired Reverb. Reverb, a robust marketplace for new, used, and vintage music gear, was brought into the Etsy family for $275 million. Today, as we approach 2025, the two companies continue to thrive as a combined force in the e-commerce world. This blog post will take you ” target=”_blank”> to the origins of this unique partnership and look at how it has shaped the music gear industry and online marketplaces over the years.
Radio Facts:
Etsy’s Acquisition of Reverb: A Significant Move in the Online Marketplace Industry
A transaction that formed a unique e-commerce collective for passionate and creative buyers and sellers
In 2019, Etsy, Inc., signed a definitive agreement to acquire Reverb Holdings, Inc., a privately held marketplace for new, used, and vintage music gear. This historic deal, which was valued at $275 million in cash, saw Reverb operating as a standalone business within the Etsy family. Founded in Chicago in 2013, Reverb was created with a simple principle – making the buying of musical instruments an easy and affordable process.
The musical gear industry has always been unique with items bought and resold numerous times. Prior to Reverb, musicians were often limited to instruments they could find locally or on generic resale websites. However, Reverb changed the game by creating a global destination for the music community, giving sellers a global audience and musicians access to a broader inventory.
Josh Silverman, Etsy, Inc. CEO, eloquently described Reverb as the ‘Etsy’ of musical instruments, with significant competitive advantages. He saw tremendous value and untapped potential in Reverb and believed that this transaction was a great strategic fit that aligned with Etsy’s mission of keeping commerce human.
David Kalt, Reverb’s founder, and CEO were excited about the future growth of the marketplace, team, and community as part of Etsy. He saw the alignment with Etsy as an opportunity to continue to create an online destination where the music industry connects over the perfect piece of gear.
The acquisition of Reverb enabled Etsy to expand into a new vertical, with a company that has a similar strategy and business model. Since the transaction closed in late 2019, both companies have continued to thrive, sharing knowledge and practices key marketplace growth areas such as marketing, seller services, and international expansion.
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