Etsy to Sell Depop for $1.2 Billion, Funds to Fuel Share Buybacks
Etsy will sell Depop to eBay for $1.2 billion in cash, marking a 26% markdown from its $1.63 billion 2021 acquisition, pending Q2 closing. The company plans to deploy proceeds into share repurchases, general corporate purposes and investments in its core marketplace.
1. Transaction Overview
Etsy agreed to sell Depop to eBay for $1.2 billion in cash, a 26% markdown from the $1.63 billion paid in 2021, with the deal set to close in Q2 pending regulatory approval.
2. Depop Performance
Depop reported approximately $1 billion in annual gross merchandise volume last year, 60% year-over-year U.S. growth, seven million active buyers—90% under age 34—and over three million active sellers as of December.
3. Capital Allocation Plans
Etsy plans to use the proceeds for share repurchases, general corporate purposes and further investments in its core marketplace to strengthen its primary platform and drive long-term growth.
4. Market Reaction
Following the announcement, Etsy shares rose about 15% in after-hours trading as investors reacted to the asset sale and anticipated enhanced shareholder returns.