eBay Buying Depop from Etsy for $1.2B Alters Valentine’s Gift Resale Market

eBay Inc. agreed to acquire Depop from Etsy, Inc. for approximately $1.2 billion in cash, the companies announced in a joint press release datelined SAN JOSE, Calif., and BROOKLYN, N.Y., on February 18, 2026. The transaction is subject to standard purchase-price adjustments and is expected to close in the spring, with the deal aimed at reshaping how secondhand fashion and gift resale function during the spring gifting window that includes Valentine’s Day.

Depop arrives with measurable scale: as of December 31, 2025 it had 7 million active buyers and more than 3 million active sellers, and reported roughly $1 billion in gross merchandise sales in 2025, with nearly 60 percent year-over-year growth in the U.S. The platform’s buyers skew young - roughly 90 percent are under age 34 - which is the strategic asset eBay is buying. eBay CEO Jamie Iannone called the acquisition a cultural fit, saying, “Depop’s social-forward marketplace perfectly complements our scale.”

Operationally the companies said Depop will continue to operate as a standalone brand and platform under eBay while integrating eBay’s backend infrastructure for shipping, financial services and trusted experiences. That means Depop listings should gain access to eBay tools such as cross-listing and the company’s Authenticity Guarantee program - the same program that uses physical inspection for luxury handbags, sneakers and watches - although sources in the announcement did not publish a technical timeline for when those integrations will be live.

Etsy framed the sale as a strategic refocus. Etsy CEO Kruti Patel Goyal said the divestiture “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,” and added that she believes the transaction is “a great outcome for Etsy’s shareholders” and that Depop is “well-positioned for its next phase of growth as part of eBay.” Etsy acquired Depop in 2021; the 2026 sale marks a return to the company’s core marketplace strategy.

Market context makes this more than a portfolio move. Business of Fashion noted tariffs and rising new-clothing costs have pushed new shoppers into resale, and analysts characterize the deal as consolidation of the circular economy as platforms compete for Gen Z and Millennial spending. Business Times described the acquisition as “one of the most significant strategic realignments in e-commerce history,” a framing echoed in industry coverage of eBay’s simultaneous strong fourth-quarter earnings.

For Valentine’s shoppers and small sellers the practical change is straightforward: Depop’s youth-driven inventory and social-first discovery will soon sit alongside eBay’s logistics and trust infrastructure, potentially expanding visibility for vintage and pre-loved gifts. Small business outlets cautioned that sellers will face new competition but could benefit from greater reach and tools; owners should monitor how cross-listing and payment integrations roll out this spring.

The deal’s close and any regulatory timeline remain unstated beyond the companies’ spring target and standard purchase-price adjustments. Expect next updates in eBay and Etsy earnings commentary and follow-up press material as the platforms outline how Depop’s community, including pop-up histories such as the Depop x Selfridges activation in August 2019, will translate into a larger, trust-backed marketplace for seasonal gift-giving.