TLDR
- eBay is purchasing Depop from Etsy for $1.2 billion in cash, and the deal is anticipated to conclude in the second quarter of 2026.
- Depop achieved $1 billion in gross merchandise sales in 2025, with nearly a 60% year – on – year growth in the U.S.
- Following the announcement, eBay’s stock increased by around 6.7% and Etsy’s stock jumped by approximately 16.9%.
- eBay also outperformed Q4 earnings. It reported an adjusted EPS of $1.41 compared to the estimated $1.35, and revenue of $2.96 billion against the expected $2.88 billion.
- Etsy initially bought Depop for $1.62 billion in 2021, which means it’s selling at a loss. However, this deal enables Etsy to refocus on its core marketplace.
eBay is acquiring Depop from Etsy for $1.2 billion in cash. This deal caused both stocks to rise significantly in after – hours trading on Wednesday.
After the company reported quarterly sales and profit that exceeded expectations and announced it was acquiring Depop from Etsy in a cash deal worth about $1.2 billion, eBay’s shares rose in extended trading.
— Bloomberg (@business)
eBay’s shares climbed by around 6.7%, while Etsy’s stock soared by roughly 16.9% upon the news. The boards of both companies unanimously approved the transaction.
Depop is a London – based second – hand fashion platform that is popular among younger shoppers. Nearly 90% of its 7 million active buyers are under 34.
In 2025, the platform had around $1 billion in gross merchandise sales, including nearly a 60% growth in the U.S. compared to the previous year. It has more than 3 million active sellers and 56.3 million registered users.
For eBay, this deal is about appealing to a younger demographic. CEO Jamie Iannone stated that Depop gives eBay a foothold with Generation Z and Millennials and fits into what he called an expanding “recommerce landscape.” eBay views it as a fast – growing category that complements its existing platform.
On the other hand, Etsy is divesting Depop. The company originally paid $1.62 billion for Depop in 2021, so this deal represents a loss on that investment. CEO Kruti Patel Goyal called it “a great outcome for Etsy’s shareholders” and said it allows Etsy to fully refocus on its core marketplace.
eBay’s Q4 Earnings Add to the Good News
The announcement of the Depop acquisition wasn’t the only reason eBay investors were happy on Wednesday. The company also released a strong Q4 earnings report.
eBay reported adjusted earnings of $1.41 per share, surpassing the analyst estimate of $1.35. Revenue came in at $2.96 billion, ahead of the forecast of $2.88 billion – a 15% year – on – year increase.
Looking forward, eBay projected a Q1 adjusted EPS of $1.53 to $1.59 and revenue of $3 billion to $3.05 billion, both higher than what Wall Street had anticipated.
Etsy Trims Its “House of Brands”
Depop wasn’t the first acquisition that Etsy has let go of. The company previously sold off Elo7 and Reverb as it struggled to maintain momentum after the post – pandemic e – commerce boom subsided.
Etsy has faced increasing competition from [unclear competitors], and low – cost rivals like Temu and TikTok Shop, which makes a case for a leaner, more focused strategy.
Etsy is scheduled to report its Q4 2025 earnings on Thursday morning, with analysts expecting an EPS of $0.84 – an 18.4% decline from the same period last year.
Wall Street currently has a consensus to hold Etsy’s stock, with an average price target of $61.58, suggesting around a 40% upside from recent levels.
The Depop deal is subject to regulatory approval and standard closing conditions, and both companies aim to close the deal in the second quarter of 2026.
