Etsy Inc (NYSE:ETSY) shares are surging in extended trading Wednesday after the company entered into an agreement to sell Depop.
- Etsy shares are powering higher. What’s fueling ETSY momentum?
eBay To Acquire Depop From Etsy
Etsy and eBay (NASDAQ:EBAY) have entered into a definitive agreement under which eBay will acquire Etsy’s fashion marketplace Depop for approximately $1.2 billion in cash.
Etsy said it plans to use the proceeds from the deal for general corporate purposes, continued share repurchases and investments in its core marketplace.
“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” said Kruti Patel Goyal, CEO of Etsy. “We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved.”
Depop is seeing strong momentum with annual gross merchandise sales of approximately $1 billion in 2025 on nearly 60% year-over-year growth in the U.S.
The transaction is expected to close in the second quarter of 2026 and has been unanimously approved by both boards. Following the closing, Depop will retain its name, brand, platform and complementary culture.
Etsy is due to report financial results for the fourth quarter before the market opens on Thursday. The company will hold a conference call at 8:30 a.m. ET on Thursday morning and plans to provide additional commentary on its sale of Depop.
ETSY Investors Cheer The Depop Sale
ETSY Price Action: Etsy shares were up 14.83% in after-hours Wednesday, trading at $50.55 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
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