Etsy has entered into a definitive agreement to divest its fashion marketplace, Depop, to eBay for an estimated $1.2 billion in cash. This strategic move, which has been unanimously approved by the boards of both companies and is anticipated to conclude in the second quarter of 2026, is poised to redirect Etsy's focus towards its primary marketplace. The proceeds from this transaction are earmarked for general corporate uses, ongoing share repurchases, and investments in its core business operations. Following the acquisition, Depop is slated to continue operating under its existing brand, platform, and cultural identity.
Etsy Stock Skyrockets Amidst Depop Divestiture to eBay
In a significant market development on February 18, 2026, after regular trading hours, shares of Etsy Inc. (NYSE: ETSY) witnessed a notable increase, climbing 14.83% to reach $50.55. This upward movement was directly attributed to the company's announcement of a definitive agreement to sell its burgeoning fashion marketplace, Depop, to eBay (NASDAQ: EBAY) for a cash consideration of approximately $1.2 billion. The decision, as articulated by Kruti Patel Goyal, CEO of Etsy, will enable the company to intensely concentrate on enhancing its core marketplace, delivering greater value to its extensive network of buyers and sellers. Depop, a vibrant online platform, has demonstrated remarkable momentum, projecting annual gross merchandise sales of about $1 billion in 2025, buoyed by an impressive nearly 60% year-over-year growth in the U.S. market. The transaction, greenlit by both companies' leadership, is expected to finalize by the second quarter of 2026, with Depop maintaining its unique identity post-acquisition. Etsy is also scheduled to release its fourth-quarter financial results on Thursday, followed by a conference call at 8:30 a.m. ET, where further insights into the Depop sale are anticipated.
This strategic divestment by Etsy underscores a broader trend in the e-commerce landscape, where companies are refining their portfolios to sharpen their competitive edge. By offloading Depop, Etsy is not only gaining substantial capital but also streamlining its operational focus, potentially leading to more concentrated efforts on innovation and user experience within its flagship platform. For eBay, the acquisition of Depop represents a strategic expansion into the dynamic and rapidly growing fashion resale market, bolstering its position against rivals. This move suggests that targeted acquisitions and divestitures will continue to be crucial mechanisms for market leaders to adapt and thrive in an ever-evolving digital economy, especially as consumer preferences shift towards sustainable and unique fashion choices.