eBay Acquires Depop from Etsy for $1.2 Billion in Cash
Event summary
- eBay Inc. will acquire Depop from Etsy for approximately $1.2 billion in cash, subject to purchase price adjustments.
- Depop reported $1 billion in annual gross merchandise sales (GMS) in 2025, with nearly 60% year-over-year growth in the U.S.
- As of December 31, 2025, Depop had 7 million active buyers, 90% of which are under the age of 34, and 3 million active sellers.
- The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals.
The big picture
This acquisition underscores eBay's push into the recommerce space, targeting younger demographics with a focus on sustainable fashion. For Etsy, the sale allows a renewed focus on its core marketplace, while eBay gains a platform with strong momentum in a high-growth segment. The deal reflects broader industry trends toward circular fashion and the consolidation of niche marketplaces under larger e-commerce players.
What we're watching
- Integration Challenges
- How eBay will integrate Depop's mobile-first, community-driven platform with its existing operations without diluting Depop's unique brand identity.
- Strategic Focus
- Whether Etsy can sustain growth in its core marketplace after divesting Depop, its fashion resale arm.
- Market Expansion
- The pace at which eBay can leverage Depop's inventory and cross-listing opportunities to amplify global demand.
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