eBay to Acquire Depop from Etsy
Rhea-AI Summary
eBay (Nasdaq: EBAY) will acquire Depop from Etsy for approximately $1.2 billion in cash, subject to purchase price adjustments, in a deal expected to close in Q2 2026 pending regulatory approvals. Depop reported ~$1 billion GMS in 2025, 7 million active buyers and strong U.S. growth.
The acquisition aims to deepen eBay's C2C fashion presence, reach younger Gen Z and Millennial consumers, and leverage cross-listing, shipping, and authentication capabilities to scale Depop globally while Etsy focuses on its core marketplace.
Positive
- $1.2B cash acquisition expands eBay fashion footprint
- Depop $1B GMS in 2025 with ~60% U.S. YoY growth
- 7M active buyers, ~90% under age 34 enhances Gen Z reach
- Cross-listing and services to boost Depop inventory visibility
Negative
- Transaction subject to regulatory approvals before closing
- Acquisition will be funded with cash on hand, affecting liquidity flexibility
- Purchase price subject to adjustments, final consideration may change
Key Figures
Market Reality Check
Peers on Argus
EBAY was down -2.95% while key internet retail peers were mixed: JD (+0.7%), CPNG (+1.69%), SE (+1.41%), MELI (+0.01%), CHWY (-0.13%). Scanner momentum also showed CHWY up 0.65% and DASH down 1.08%, supporting a stock‑specific move rather than a sector rotation.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 06 | Acquisition closing | Positive | +0.5% | Completion of Caramel acquisition to enhance online auto transactions. |
| Jan 13 | Acquisition agreement | Positive | -0.3% | Definitive agreement to acquire Caramel to streamline vehicle purchases. |
| Apr 10 | Acquisition agreements | Positive | +1.0% | Agreements for Goldin purchase and sale of eBay Vault to PSA. |
Recent acquisition headlines have produced modest moves around flat: two small positive reactions and one small negative reaction, suggesting limited but generally benign price impact from M&A news.
Over the past two years, eBay has used acquisitions to extend its marketplace capabilities. In January–February 2025, it signed and then closed the Caramel acquisition to simplify online vehicle transactions. In April 2024, it announced agreements involving Goldin and the eBay Vault. Those deals targeted autos and collectibles; today’s Depop agreement adds a fashion-focused C2C marketplace with strong Gen Z and Millennial engagement, continuing this strategic expansion.
Historical Comparison
In the last three acquisition-related announcements, EBAY’s average next-day move was about +0.39%, indicating historically muted but generally constructive reactions to M&A news.
eBay’s recent deals expanded into autos via Caramel and collectibles through Goldin/eBay Vault. The Depop agreement adds a fashion recommerce marketplace with a younger user base, extending this multi-category platform strategy.
Market Pulse Summary
This announcement outlines eBay’s plan to acquire Depop, a fashion recommerce marketplace with about $1B in 2025 GMS, nearly 60% U.S. growth, and a predominantly under‑34 customer base. It extends eBay’s C2C and fashion focus, a theme seen in prior acquisitions across autos and collectibles. Investors may watch regulatory approvals, closing timing in Q2 2026, integration progress, and how Depop contributes to fashion GMV growth over time.
Key Terms
consumer-to-consumer (C2C) financial
gross merchandise volume (GMV) financial
recommerce technical
AI-generated analysis. Not financial advice.
Enhances eBay's consumer-to-consumer (C2C) value proposition through addition of leading fashion marketplace with compelling complementary offering and deeply engaged Gen Z and Millennial customer base
Etsy to focus exclusively on driving sustainable growth for its core marketplace
Depop is a mobile-first, community-powered fashion marketplace experiencing strong momentum with annual gross merchandise sales (GMS) of approximately
"Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities," said Jamie Ianonne, Chief Executive Officer of eBay. "A key C2C driver, fashion represents more than
"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
The addition of Depop will accelerate eBay's C2C strategy by deepening its reach with younger, fashion-forward consumers and expanding its presence in one of the most dynamic areas of resale. As part of eBay, Depop will benefit from eBay's global scale and suite of capabilities, including its financial services, shipping solutions, and trusted experiences like Authenticity Guarantee to further accelerate growth and enhance the buyer and seller experience. eBay will also expand the visibility of Depop's inventory, including through cross-listing opportunities, which will amplify global demand and unlock additional market opportunity.
Peter Semple, Chief Executive Officer of Depop, added, "We're thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the
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 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.
Following the closing of the transaction, Depop is expected to retain its name, brand, platform, and complementary culture.
Earnings Results and Investor Calls
In a separate press release issued today, eBay reported its fourth quarter and full year 2025 financial results and provided its outlook for first quarter 2026. eBay will host a conference call to discuss its results and the acquisition of Depop at 2:00 PM PT / 5:00 PM ET today.
Tomorrow, Etsy will report its fourth quarter and full year 2025 financial results and provide its outlook for first quarter 2026. Etsy will host a conference call to discuss its results and provide additional commentary on its sale of Depop at 5:30 AM PT / 8:30 AM ET tomorrow.
A live webcast of each company's investor conference calls can be accessed through eBay's and Etsy's investor relations websites, respectively.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces share a mission to "Keep Commerce Human," and Etsy's committed to using the power of business and technology to strengthen communities and empower people. Its primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, Etsy offers a range of tools and services that address key business needs.
Etsy, Inc. also owns fashion resale marketplace Depop. Its marketplaces operate independently, while benefiting from shared expertise in product, marketing, technology, and customer support.
Etsy was founded in 2005 and is headquartered in
About Depop
Depop is the community-powered circular fashion marketplace where people can buy, sell and discover desirable, affordable secondhand fashion. For more information, visit www.depop.com.
Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of the federal securities laws, including the timing of the closing of the transaction and the potential benefits of the transaction. In some cases, forward-looking statements can be identified by terms such as "aim," "anticipate," "believe," "commit," "continue," "could," "design," "develop," "enable," "estimate," "expect," "forecast," "future," "goal," "impact," "intend," "likely," "maintain," "may," "ongoing," "opportunity," "optimistic," "outlook," "plan," "possible," "potential," "predict," "probable," "pursue," "remain," "seek," "should," "strategy," "strive," "target," "value," "will," "would," or similar expressions, variations and derivative forms and/or the negatives of those words. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the possibility that regulatory approvals and other closing conditions to the transaction are not received or satisfied on a timely basis or at all; the possibility that the parties may not fully realize the anticipated benefits of the transaction; changes in the anticipated timing for closing the transaction and receipt of regulatory approvals; business disruption during the pendency of or following the transaction; diversion of management time on transaction-related issues; the reaction of customers and other persons to the transaction; and other events that could adversely impact the completion of the transaction, including industry or economic conditions outside of the parties' control. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that eBay or Etsy expects. These and other risks and uncertainties include market risks, trends and conditions. These and other risks and uncertainties are more fully described in eBay's and Etsy's filings with the Securities and Exchange Commission, including in the risk factors included in eBay's Annual Report on Form 10-K for the year ended December 31, 2024, as amended, and Etsy's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, and subsequent reports that eBay or Etsy files with the Securities and Exchange Commission. In light of such risks, readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements represent beliefs and assumptions of eBay and/or Etsy only as of the date of this press release. eBay and Etsy do not intend to update, and disclaim any obligation to update, any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law.
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SOURCE eBay Inc.
FAQ
What price did eBay agree to pay for Depop (EBAY) and are there adjustments?
When is the EBAY acquisition of Depop expected to close and what approvals are needed?
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