eBay announced a definitive agreement to purchase Depop from Etsy for $1.2B in an all-cash deal. Etsy had acquired Depop, which was previously an independently owned fashion resale marketplace, in June 2021 for $1.625B. Depop will continue operating under its own brand after the deal closes in Q2 2026, pending regulatory approval.
Wow, a $425M loss? What did Etsy do to that poor company in the past 5 years?
Nothing worse than it did to itself…
Depop losing 25% market value in 5 years under Etsy’s ownership means it actually fared better than Etsy itself during that same timeframe, during which Etsy lost 72% of its market value. The ETSY stock was trading as high as $184 per share in June 2021 when the company acquired Depop, and now hovers around $52 per share.
Maybe instead of selling Depop, they should’ve sold Etsy. LOL.
Why did eBay acquire Depop, and why did Etsy sell it?
eBay says the deal will help it reach Gen Z and Millennial consumers, as well as expand its fashion category, where it already does over $10B in sales each year. Depop generated about $1B in GMV in 2025, has 7M active buyers with nearly 90% under age 34.
As for Etsy, the company says it wants to refocus on driving growth for its core marketplace, which desperately needs attention. The sale marks the third and final shedding of brands that former CEO Josh Silverman had acquired, including Reverb, which Etsy bought in 2019 for $275M and sold in 2023 for $105M, and Elo7, which Etsy bought in 2021 for $217M and sold in 2023 for an astonishing $19M.
Etsy has a steep climb ahead to get back to its glory days. The once-artisanal marketplace has lost both consumer and seller trust in recent years while chasing short term gains and expanding beyond its original mission of supporting sellers of handmade goods. I wish them the best of luck under their new leadership.
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