Announced yesterday, Etsy promises that Reverb will remain a standalone business. The acquisition allows Etsy to expand into a new field from arts, crafts, clothing and jewelry to buying and selling of musical instruments.
As the release notes, many instruments are bought and sold multiple times in their lifetime and Reverb has made it easier for musicians, brick and mortar stores and collectors to buy vintage or new gear.
"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."
The deal is expected to close in late third quarter or early fourth quarter.
David Kalt, Reverb founder and CEO will remain on through the transition and serve as CEO until Etsy gets a new leader. He will remain close to the business. Reverb was founded in 2013.