eBay Acquires Depop to Expand Into Gen Z Fashion
eBay acquires Depop to broaden its consumer-to-consumer fashion reach among younger shoppers while Etsy redirects proceeds toward buybacks.
KEY TAKEAWAYS
- eBay will buy Depop for about $1.2 billion in cash, subject to purchase-price adjustments.
- Deal gives eBay immediate resale scale with Depop's roughly $1.0 billion GMS and 7 million active buyers.
- Closing targeted Q2 2026 pending regulatory approvals; Etsy will redeploy proceeds to buybacks and core marketplace.
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eBay Inc. (Nasdaq: EBAY) will acquire Depop from Etsy Inc. (NYSE: ETSY) on Feb. 18, 2026, broadening its consumer-to-consumer (C2C) fashion footprint toward younger shoppers while allowing Etsy to focus proceeds on share repurchases and its core marketplace, the companies said in a joint press release.
Deal Terms and Timeline
Under the definitive agreement, eBay will pay approximately $1.2 billion in cash, subject to customary purchase-price adjustments. The company will fund the acquisition from cash on hand. Both boards approved the transaction unanimously. The deal is expected to close in the second quarter of 2026, pending required regulatory approvals.
Strategic Fit and User Metrics
Depop reported about $1 billion in annual gross merchandise sales (GMS) in 2025, with nearly 60% year-over-year growth in the U.S. The platform has roughly 7 million active buyers, nearly 90% under age 34, and more than 3 million active sellers. This gives eBay immediate scale in a resale market dominated by younger, fashion-forward consumers.
After closing, Depop will keep its name, platform, and culture. eBay plans to expand Depop’s inventory visibility through cross-listing and apply its financial services, shipping solutions, and Authenticity Guarantee to the social-first marketplace. These steps aim to boost demand and support creators and sellers. Jamie Iannone, eBay’s chief executive, said, "Depop has built a trusted, social-forward marketplace."
