eBay Acquires Depop from Etsy for $1.2 Billion

eBay Inc. (Nasdaq: EBAY) has entered into a definitive agreement to acquire Depop, a leading consumer-to-consumer (C2C) fashion marketplace, from Etsy, Inc. (NYSE: ETSY) for approximately $1.2 billion in cash. The acquisition, announced on February 18, 2026, is subject to certain purchase price adjustments and is expected to close in the second quarter of 2026, pending regulatory approvals.

Depop, which has gained significant traction among Gen Z and Millennial consumers, reported annual gross merchandise sales (GMS) of approximately $1 billion in 2025, reflecting nearly 60% year-over-year growth in the U.S. The platform boasts 7 million active buyers, with nearly 90% under the age of 34, and over 3 million active sellers. This acquisition aligns with eBay’s strategy to enhance its C2C offerings and expand its reach into the growing recommerce market.

Jamie Ianonne, CEO of eBay, stated, “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category. We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale and operational capabilities.” He emphasized that fashion represents over $10 billion in annual gross merchandise volume (GMV) for eBay, with a 10% year-over-year GMV growth in the U.S. in 2025.

Kruti Patel Goyal, CEO of Etsy, expressed excitement about the transaction, noting, “This allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers.” She highlighted the positive outcome for Etsy’s shareholders and the potential for Depop’s growth under eBay’s umbrella.

The acquisition is expected to create synergies through cross-selling opportunities between eBay and Depop’s user bases, as well as shared marketing expenses and reduced operational costs. eBay plans to leverage its global scale and suite of capabilities, including financial services and shipping solutions, to enhance the buyer and seller experience on Depop.

Following the acquisition, Depop is expected to retain its name, brand, and platform, while integrating eBay’s technology to improve user experience and streamline seller onboarding processes. The deal positions eBay to strengthen its market share in the C2C fashion segment, particularly against competitors like Poshmark and Mercari.

As eBay prepares for the integration of Depop, potential challenges include cultural integration between the two teams and maintaining Depop’s brand identity. The competitive landscape may also shift, prompting rivals to enhance their platforms or pursue similar acquisitions to counter eBay’s strengthened position.

In a separate announcement, eBay reported its fourth quarter and full year 2025 financial results, which will be discussed in a conference call scheduled for later today. Etsy will also provide its financial results and commentary on the sale of Depop in a call tomorrow.