eBay to Buy Depop from Etsy for $1.2 Billion, Shaking Fashion Resale

eBay Inc. agreed to acquire Depop from Etsy, Inc. for approximately $1.2 billion in cash, subject to certain purchase price adjustments, after boards of eBay and Etsy unanimously approved the transaction. The companies announced the deal on Feb. 18, 2026 and said it is expected to close in the spring or the second quarter, with Depop to operate as a standalone brand under eBay’s ownership.

eBay framed the acquisition as central to its consumer-to-consumer strategy. In a press release eBay said, “The addition of Depop will accelerate eBay’s C2C strategy by deepening its reach with younger, fashion-forward consumers and expanding its presence in one of the most dynamic areas of resale. As part of eBay, Depop will benefit from eBay’s global scale and suite of capabilities, including its financial services, shipping solutions, and trusted experiences like Authenticity Guarantee to further accelerate growth and enhance the buyer and seller experience. eBay will also expand the visibility of Depop’s inventory, including through cross-listing opportunities, which will amplify global demand and unlock additional market opportunity.” eBay CEO Jamie Iannone added, “Depop’s social-forward marketplace perfectly complements our scale.”

Depop arrives with measurable traction: roughly $1 billion in gross merchandise sales in 2025, about 7 million active buyers as of Dec. 31, 2025 and more than 3 million active sellers. Nearly 90 percent of those buyers are under the age of 34, a demographic that Depop—founded in 2011 and based in London—has long attracted with a social-first marketplace model that proved especially potent in the U.S.

Etsy positioned the sale as a refocus on its core marketplace. Etsy CEO Kruti Patel Goyal said selling Depop “allows us to focus exclusively on the compelling opportunity we see in front of us” and “to grow the Etsy marketplace in ways that matter most to our buyers and sellers.” Patel Goyal also said she is confident that “Depop is well-positioned for its next phase of growth as part of eBay,” while noting Depop has become “one of the fastest-growing fashion resale marketplaces in the US.” Etsy bought Depop in 2021 for roughly $1.6 billion to $1.625 billion and has since pared back acquisitions outside its namesake platform, including the earlier sale of its music-gear marketplace Reverb.

Investors reacted strongly to the announcement in after-hours trading: eBay shares rose more than 7 percent and Etsy shares climbed close to 15 percent. The timing intersected with quarterly reporting cycles: eBay reported fourth-quarter earnings the day of the announcement and Etsy was scheduled to report fourth-quarter earnings the following day, where executives were expected to address the deal.

Operationally, eBay said it will plug Depop into its shipping, financial services and authenticity systems while preserving Depop’s brand, platform and culture. eBay’s Authenticity Guarantee program, which uses physical inspection for luxury handbags, sneakers and watches, and earlier moves such as a 2023 investment in The Volte, signal how eBay plans to extend trust and circular-economy services to Depop sellers and buyers.

The transaction leaves open several practical questions: public materials do not specify regulatory conditions for closing, the mechanics of cross-listing inventory, or details on employee retention and leadership transitions. With the announced $1.2 billion cash price standing below the roughly $1.6 billion paid in 2021, the sale crystallizes a notable reorientation in marketplace strategy and valuations as the companies move toward a spring or second-quarter closing.