eBay Acquires Depop from Etsy for $1.2 Billion, Stocks Surge
eBay's acquisition of Depop from Etsy for $1.2 billion in cash has sent both companies' stocks soaring. The deal, expected to close in Q2 2026, marks a strategic shift for eBay as it taps into the growing secondhand fashion market. Depop, a London-based platform popular with Gen Z and millennials, reported $1 billion in gross merchandise sales in 2025, with nearly 60% year-over-year growth in the U.S.
Investors reacted positively to the news, with eBay shares rising 6.7% and Etsy stock jumping 16.9% in after-hours trading. The transaction allows Etsy to refocus on its Core marketplace after selling Depop at a loss compared to its 2021 purchase price of $1.62 billion.
Separately, eBay reported strong Q4 earnings, beating estimates with adjusted EPS of $1.41 and revenue of $2.96 billion. The dual catalysts of the acquisition and earnings beat have reignited interest in eBay's growth potential.
