US online marketplace eBay has agreed to acquire fashion resale platform Depop from Etsy in a $1.2bn cash deal.
The transaction is expected to close in the second quarter of 2026.
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Depop will continue to operate under its existing name, brand identity, platform and culture after the acquisition.
Depop operates as a mobile-first consumer-to-consumer (C2C) fashion marketplace.
It generated approximately $1bn in annual gross merchandise sales (GMS) in 2025, with nearly 60% year-on-year growth in the US.
As of 31 December 2025, the platform counted seven million active buyers, almost 90% of whom are aged under 34 years, and more than three million active sellers.
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By GlobalDataeBay said the purchase would advance its C2C strategy by broadening engagement with younger shoppers and reinforcing its position in resale fashion.
As part of eBay, Depop will gain access to the group’s financial services, shipping capabilities and buyer protection programmes, as well as broader inventory exposure through cross-listing.
eBay plans to finance the acquisition using cash reserves. Etsy said it intends to deploy the proceeds for general corporate purposes, ongoing share buybacks and investment in its core marketplace.
The deal has received unanimous approval from both companies’ boards and remains subject to customary closing conditions and regulatory clearances.
In a separate announcement, eBay reported fourth-quarter 2025 revenue of $3bn, rising 15% on a reported basis and 13% on a foreign-exchange-neutral (FXN) basis.
Gross merchandise volume (GMV) reached $21.2bn, up 10% as reported and 8% on an FXN basis.
Net income from continuing operations totalled $525m, or $1.14 per diluted share, with operating margins of 20.3%.
Operating cash flow from continuing operations was $595m and free cash flow $478m.
The company returned $756m to shareholders, comprising $625m in share repurchases and $131m in dividends.
For full-year 2025, revenue amounted to $11.1bn, an 8% reported increase and 7% on an FXN basis, while GMV was $79.6bn, up 7% reported and 6% on an FXN basis.
Net income from continuing operations was $2bn, or $4.26 per diluted share, and operating margins were 20.5%.
Operating cash flow reached $2bn and free cash flow $1.5bn.
eBay returned more than $3bn to shareholders during the year, including $2.5bn in buybacks and $531m in dividends.
The company also said it expanded its eBay Live livestream shopping service into Germany and Australia.
It also rolled out a beta version of its AI-enabled Magical Listing tool for new and reactivated US sellers on iOS and Android, and launched an AI-driven trading card scanning capability using Smart Lens technology.
