Etsy Sells Depop for $1.2 Billion, Funds Buybacks
Etsy agreed to sell fashion resale platform Depop to eBay for $1.2 billion in cash, with the transaction set to close in Q2 2026. Depop generated about $1 billion in 2025 GMS with 60% US growth, and Etsy will use proceeds for share buybacks and corporate investments.
1. Deal Overview
Etsy has entered a definitive agreement to sell Depop to eBay for $1.2 billion in cash, targeting a closing in the second quarter of 2026 pending regulatory approvals.
2. Depop Performance
Depop reported approximately $1 billion in gross merchandise sales for 2025, driven by nearly 60% year-on-year growth in the U.S., and maintains seven million active buyers and over three million active sellers as of December 31, 2025.
3. Strategic Rationale
Etsy is streamlining its focus on its core handcrafted and vintage marketplace, while eBay aims to bolster its mobile-first consumer-to-consumer fashion strategy and engage younger shoppers through Depop’s social marketplace.
4. Use of Proceeds
Etsy plans to allocate the transaction proceeds toward general corporate purposes, ongoing share repurchases, and investments in its primary marketplace, enhancing shareholder returns and liquidity.