eBay Inc. announced a definitive agreement to acquire Depop, the second‑hand fashion marketplace owned by Etsy, for approximately $1.2 billion in cash. The deal, which is expected to close in the second quarter of 2026, follows eBay’s strong Q4 2025 earnings, where revenue of $3.0 billion and non‑GAAP earnings per share of $1.41 beat analyst estimates of $2.87 billion and $1.35, respectively.
Depop’s platform serves about 7 million active buyers, 90 % of whom are under 34, and more than 3 million active sellers. In 2025 the marketplace generated roughly $1 billion in gross merchandise sales, while eBay’s fashion category alone accounts for over $10 billion in annual GMV. The acquisition is intended to broaden eBay’s reach among Gen Z and millennial shoppers and to strengthen its position in the fast‑growing recommerce market.
Jamie Iannone, eBay’s CEO, said the transaction would allow the company to “grow the eBay marketplace in ways that matter most to our buyers and sellers” and to “benefit from our scale, complementary offerings, and operational capabilities.” The deal aligns with eBay’s Q1 2026 guidance, which projects revenue of $3.00‑$3.05 billion and non‑GAAP EPS of $1.53‑$1.59, both above analyst expectations. eBay’s operating margin fell to 20.3 % from 21.1 % in the prior year, and its non‑GAAP operating margin decreased to 26.1 % from 27.0 %, but management indicated that margin expansion is expected as the business scales.
Etsy, which sold Depop to eBay, said the divestiture allows it to focus exclusively on its core marketplace for unique and creative goods. The sale represents a $400 million loss on the $1.6 billion purchase price in 2021, and follows earlier divestitures of Reverb and Elo7. Etsy’s Q4 2025 revenue of $881.6 million, up 6.6 % year‑over‑year, underscores the company’s intent to streamline its portfolio.
Investors responded favorably to the announcement, reflecting confidence in eBay’s strategy to capture younger consumers and in Etsy’s renewed focus on its core business. The transaction is expected to enhance eBay’s competitive position against rivals such as Vinted and to accelerate growth in the recommerce segment, while providing Etsy with capital to invest in its primary marketplace.
The acquisition positions eBay to leverage Depop’s strong community and fashion focus, while integrating its scale, shipping infrastructure, and AI‑powered tools. For Etsy, the sale marks a strategic pivot back to its original marketplace model, potentially improving long‑term profitability and shareholder value. Together, the deal signals a shift in the second‑hand fashion landscape and underscores the importance of platform scale and user engagement in the evolving e‑commerce ecosystem.
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