eBay to Buy Depop from Etsy for $1.2B, Boosting Secondhand Fashion

eBay Inc. agreed to acquire Depop from Etsy, Inc. for approximately $1.2 billion in cash, a deal announced in a joint statement dated February 18, 2026 from SAN JOSE, Calif., and BROOKLYN, N.Y. The transaction, which is subject to certain purchase price adjustments, is aimed at strengthening eBay’s position in peer-to-peer recommerce and accelerating its appeal to Gen Z and Millennial shoppers.

Under the terms described in investor materials and subsequent reporting, Depop will remain a standalone brand under eBay while integrating eBay’s backend infrastructure for shipping and financial services. Business of Fashion reported the deal is expected to close in the spring, and eBay framed the purchase as a way to advance one of its “newest and fastest-growing Focus Categories” in fashion. Jamie Ianonne, Chief Executive Officer of eBay, said, “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities,” adding that fashion “represents more than $10 billion in annual gross merchandise volume (GMV) for eBay and delivered 10% year-over-year GMV growth in the U.S. in 2025.”

The attraction is clear on paper: Diginomica reported that Depop boasts three million active sellers and seven million active buyers, and that users are “mostly (90%) Gen Z,” which is exactly the audience eBay hopes to court. Etsy’s ownership history deepens the context - CNBC noted Etsy bought Depop in 2021 for roughly $1.62 billion, while Diginomica cited the 2021 price as about $1.63 billion, making the current sale price materially lower than what Etsy paid five years ago and prompting commentary that eBay “looks like it's got a good deal.”

Investors reacted quickly: CNBC reported Etsy shares jumped more than 17% on the announcement day. The investor release emphasized that the consideration is cash and reiterated that the purchase price is “subject to certain purchase price adjustments.” Business Times coverage tied the timing to a strong fourth-quarter earnings report from eBay, suggesting the company had the balance sheet and momentum to make a strategic buy.

This is consolidation with cultural teeth. Business of Fashion called it a major consolidation of the resale market, and Diginomica assessed the move as “a watershed moment for the e-commerce industry,” saying the acquisition aligns with a cultural shift toward sustainability and a technological shift toward AI-driven discovery. For Depop’s social-first feeds and for eBay’s $10 billion fashion platform, the bet is that scale plus a Gen Z storefront can turn pre-loved pieces into mainstream commerce without erasing the vibe that made Depop a cultural hotspot.