eBay to Acquire Depop from Etsy for $1.2 Billion in Markdown Deal; Both Stocks Rally

eBay has officially announced a definitive agreement to acquire the secondhand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash. Notably, this sale price represents a markdown compared to the original acquisition price Etsy previously paid for the platform. Despite the lower valuation, markets reacted positively, with shares of both eBay and Etsy rallying following the announcement, including an 18% surge in Etsy's stock. Depop’s strong appeal to Gen Z and millennial shoppers aligns with eBay's strategy to strengthen its presence in the rapidly growing resale market. This divestment provides Etsy with a substantial cash injection, allowing the company to streamline its focus on its core marketplace operations. Analysts view the transaction as a strategic win for eBay’s demographic reach while delivering immediate value to Etsy shareholders through a simplified business model.