Illustration: Aïda Amer/Axios

OfferUp, a Bellevue, Washington-based peer-to-peer marketplace for local goods, agreed to buy New York-based rival Letgo in an all-stock deal.

Why it matters: This is one of the few deals that was helped, not hurt, by the coronavirus pandemic. Sources say that the two companies had been discussing a tie-up for more than a year, but talks intensified as America's economy began shutting down — a crisis leading to compromise.

  • OfferUp also raised $120 million of new funding led by Letgo majority investor OLX Group (the classifieds unit of Naspers), which will hold a 40% stake in the combined company. Existing OfferUp investors Andreessen Horowitz and Warburg Pincus also participated.
  • Up & down: OfferUp CEO Nick Huzar tells Axios the transaction volume hasn't been too negatively affected over the past few weeks, but that the types of items sold have changed. For example, there have been massive spikes in the home/garden and video game categories, while things like jewelry have sagged.

The bottom line:

"The acquisition will see two of the largest third-party buying and selling marketplaces — outside of Craigslist, eBay and Facebook Marketplace, of course — become a more significant threat to the incumbents. Together, the new entity will have more than 20 million monthly active users across the U.S. For consumers, the deal means they’ll no longer have to list in as many apps when looking to unload some household items, electronics, furniture or whatever else they want to sell."
Sarah Perez, TechCrunch

Go deeper

Updated 50 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: The swing states where the pandemic is raging. Ex-FDA chief: Pence campaigning after COVID exposure puts others at risk — Mark Meadows: "We are not going to control the pandemic"
  2. Health: 13 states set single-day coronavirus case records last week — U.S. reports over 80,000 new cases for second consecutive day.
  3. Education: The dangerous instability of school re-openings.
  4. World: Australian city to exit one of world's longest lockdowns — In photos: Coronavirus restrictions grow across Europe
  5. Media: Fox News president and several hosts advised to quarantine after possible COVID-19 exposure
  6. Nonprofit: Rockefeller Foundation commits $1 billion for COVID-19 recovery
Dion Rabouin, author of Markets
2 hours ago - Economy & Business

Bond investors see brighter days

Illustration: Sarah Grillo/Axios

U.S. government bonds could breakout further after yields on the benchmark 10-year Treasury note ticked up to their highest since early June last week.

But, but, but: Strategists say this move is about an improving outlook for economic growth rather than just inflation.

Erica Pandey, author of @Work
4 hours ago - Economy & Business

The dangerous instability of school re-openings

Illustration: Eniola Odetunde/Axios

Schools across the country have flip-flopped between in-person and remote learning — and that instability is taking a toll on students' ability to learn and their mental health.

The big picture: While companies were able to set long timelines for their return, schools — under immense political and social strain — had to rush to figure out how to reopen. The cobbled-together approach has hurt students, parents and teachers alike.