Overview
- The companies announced the cash deal alongside eBay’s fourth-quarter results, and Etsy said it will refocus on its core marketplace.
- Investors cheered the move, with Etsy up more than 14% and eBay up over 6% in after-hours trading.
- Etsy bought Depop nearly five years ago for about $1.62 billion, leaving the new price significantly lower.
- eBay CEO Jamie Iannone said the purchase bolsters its fashion initiative and access to younger shoppers, roughly 90% under 34 on Depop.
- The divestiture extends Etsy’s unwind of its “house of brands” portfolio after selling Elo7 in 2023 and Reverb last year, and the deal is slated to close in the second quarter.