Etsy Soars 18% After Selling Depop to eBay for $1.2 Billion

• eBay is paying approximately $1.2 billion in cash for Depop, a secondhand clothing marketplace
• Etsy shares jumped 18% on the news, indicating strong investor approval of the divestiture
• The acquisition allows eBay to strengthen its position in the growing secondhand fashion segment

Summary: Etsy Sells Depop to eBay for $1.2 Billion

Key Transaction Details:

Etsy announced the sale of its secondhand clothing marketplace Depop to eBay for approximately $1.2 billion in cash. The divestiture triggered a significant market reaction, with Etsy stock surging 18% following the announcement.

Companies Involved:

• Etsy (ETSY): The seller, divesting its resale fashion platform
• eBay (EBAY): The acquirer, expanding its presence in the secondhand clothing market
• Depop: The asset being sold—a marketplace specializing in secondhand apparel

Market Implications:

The substantial share price jump indicates strong investor approval of Etsy's strategic decision to divest Depop. The 18% surge suggests shareholders view the $1.2 billion cash infusion favorably, potentially allowing Etsy to focus on its core marketplace business, reduce debt, or return capital to shareholders.

For eBay, the acquisition represents a strategic move to strengthen its position in the growing resale and sustainable fashion sector, which has seen increased consumer demand. Depop's younger user demographic and social commerce features complement eBay's existing marketplace infrastructure.

Financial Highlights:

• Transaction value: $1.2 billion (all cash)
• Etsy stock performance: +18% on announcement
• Deal structure: Cash transaction

The deal reflects continued consolidation in the e-commerce sector and highlights the premium valuations being placed on platforms serving the secondhand fashion market. The all-cash structure provides Etsy with immediate liquidity and financial flexibility for future strategic initiatives.