On February 18, 2026, eBay Inc. (Nasdaq: EBAY) announced a landmark acquisition of Depop, a prominent C2C fashion marketplace, from Etsy, Inc. (NYSE: ETSY), for approximately $1.2 billion in cash. This strategic decision positions eBay to expand its footprint in the rapidly growing recommerce sector, particularly among younger consumers.

1. Acquisition Details

The acquisition will be funded through eBay's available cash reserves and is subject to certain price adjustments. The boards of directors for both eBay and Etsy have unanimously approved the transaction, which is anticipated to close in the second quarter of 2026, pending regulatory approvals and other closing conditions.

Depop has garnered significant traction, boasting annual gross merchandise sales (GMS) of around $1 billion in 2025, featuring an impressive 60% year-over-year growth in the U.S. market. With 7 million active buyers—nearly 90% of whom are under 34 years old—and over 3 million active sellers, Depop has successfully created a vibrant platform for buying, selling, and discovering secondhand fashion.

2. Strategic Rationale

Jamie Ianonne, CEO of eBay, expressed confidence in the acquisition, highlighting Depop's reputation as a "trusted, social-forward marketplace." He emphasized that the combination of eBay's operational scale and Depop's strong brand will drive long-term growth in the C2C fashion category, which already accounts for over $10 billion in annual GMV for eBay.

The acquisition not only enhances eBay's reach into the fashion sector but also enables the company to tap into the youthful demographic that Depop has cultivated. Ianonne noted that this move aligns with eBay's strategy to deepen its presence in one of the most dynamic areas of resale, enhancing the overall buyer and seller experience.

3. Etsy's Perspective

Kruti Patel Goyal, CEO of Etsy, commented on the sale, stating that it allows Etsy to concentrate on its core marketplace while delivering value to its shareholders. She praised the unique culture and brand that Depop has established, asserting confidence in its potential for growth under eBay’s ownership.

4. Enhancing Depop's Capabilities

Peter Semple, CEO of Depop, expressed enthusiasm about joining eBay, noting that the partnership would allow Depop to leverage eBay's extensive resources, including financial services and shipping solutions. This collaboration is expected to accelerate Depop's growth trajectory and expand its market presence.

5. Future Outlook

The acquisition is poised to enhance eBay’s existing marketplace offerings by integrating Depop's community-driven model and inventory visibility. This will potentially create cross-listing opportunities that can amplify global demand for secondhand fashion items.

In a separate announcement, eBay also released its financial results for Q4 and full year 2025, alongside its outlook for Q1 2026. The company is set to host a conference call to discuss these results and the acquisition, showcasing its commitment to transparency and investor engagement.

6. Conclusion

eBay's acquisition of Depop marks a significant move in the evolving landscape of e-commerce, particularly in the fashion resale market. By leveraging Depop's unique brand and capabilities, eBay aims to strengthen its position among younger consumers and capitalize on the growing trend of sustainable fashion. As the transaction moves toward completion, stakeholders will closely monitor its implications for both eBay and the broader marketplace.

Original press release