Etsy is buying Reverb, but will allow the instrument marketplace to operate as a standalone company when the deal goes down. Reverb, founded in Chicago in 2013, was started on the principle that buying musical instruments should be easy and affordable. Any musician knows that those two parameters are often hard to find.
Sellers on Reverb are typically individual musicians, stationary retailers, instrument dealers of every size and even high-profile artists. In the world of musical instruments, one thing is unique – items are typically bought and resold many times. It's a great place to find instruments that have also been tweaked a bit by their owners. They want the world of music to have a place to connect with one another over the perfect piece of gear. Anyone who has played a musical instrument knows what it is like to find that "perfect piece".
Directly from etsy.com, here is the Transaction Rationale:
- Reverb enables Etsy to expand into a new vertical, with a company that has a similar strategy and business model.
- Reverb has built a strong brand in a large, fragmented market, with healthy growth dynamics.
- The marketplace offers its sellers on-site product promotion and has a strong content-driven marketing strategy; it is in the early stages of leveraging its platform for additional revenue growth.
- Reverb's seller base spans many countries, with key markets including some of the same ones as Etsy, such as the U.S., Canada, UK, France, Germany and Australia.
- Leveraging Etsy's expertise, we believe that Reverb will be better positioned to capture addressable market opportunities and drive repeat visits.
A Done Deal
The deal is expected to close in the third quarter or early fourth quarter of 2019 after a Hart-Scott-Rodino review and other customary closing conditions.