eBay Acquires Fashion Marketplace Depop From Etsy In $1.2B Deal
eBay is acquiring fashion marketplace Depop from Etsy in ~$1.2B deal expected to close in Q2 2026.
The announcement comes ahead of eBay's Q4 earnings call, with the company saying the deal will be financed with cash on hand.
Etsy also filed their own disclosures and statements saying selling off Depop will allow them to "focus exclusively on driving sustainable growth for its core marketplace."
“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” said Kruti Patel Goyal, Chief Executive Officer of Etsy.
“We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved. We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”
The move could prove risky for Etsy as Depop was the only part of the business outperforming expectations in recent earnings reports, but investors may be relieved that under new leadership, the company has finally shed the last of ex-CEO Josh Silverman's "house of brands" after selling off Reverb and Elo7 in recent years.
Liz Morton
The deal comes almost one year after analyst speculation surfaced about a possible merger between the two companies.
Liz Morton
At the time, I predicted that a complete takeover wouldn't make much sense, but that eBay buying one of the smaller subsidiaries like Reverb or Depop would be a much more plausible scenario.
Depop will help eBay expand their C2C fashion initiatives and bring in younger Gen Z shoppers in the UK and US markets, similar to what eBay hopes last year's acquisition of Tise will do in the Nordic region.
Liz Morton
Transaction Details and Closing
eBay intends to fund the transaction with cash on hand. Etsy plans to utilize the proceeds for general corporate purposes, continued share repurchases and investment in its core marketplace.
The transaction, which has been unanimously approved by both eBay's and Etsy's Board of Directors, is currently expected to close in the second quarter of 2026, subject to the satisfaction of certain closing conditions and receipt of required regulatory approvals.
Regulatory concerns raised by the acquisition may receive additional scrutiny as eBay is still under an enhanced compliance monitoring program as a result of a deferred prosecution agreement related to the 2019 stalking scandal and recently lost their Chief Risk and Compliance Officer.
Liz Morton
Following the closing of the transaction, Depop is expected to retain its name, brand, platform, and complementary culture.
Stay tuned for updates after eBay's earnings call today and Etsy's earnings call tomorrow!
