Shares of Etsy (ETSY +0.51%) climbed on Thursday after the e-commerce platform agreed to sell its secondhand clothing business to eBay (EBAY 0.73%).
By the close of trading, Etsy's stock price was up more than 9%.
Image source: Getty Images.
A mutually beneficial asset sale
Under the terms of the deal, eBay would purchase Etsy's consumer-to-consumer fashion marketplace, Depop, for $1.2 billion in cash.
The re-commerce platform is popular among Gen Z and Millennial customers, with 7 million active buyers -- mostly under the age of 34 -- and over 3 million sellers.
Depop's annual gross merchandise sales surged almost 60% in the U.S. in 2025, reaching roughly $1 billion worldwide.
"Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities," eBay CEO Jamie Ianonne said in a press release.
NYSE: ETSY
Key Data Points
Refocusing on its core business
Selling Depop will enable Etsy to concentrate its efforts on expanding its e-commerce marketplace for unique and creative goods. The $1.2 billion in cash it expects to receive is equal to about a quarter of its current market capitalization. Etsy plans to use the cash to fund its growth initiatives and to buy back its stock.
"We believe this transaction is a great outcome for Etsy's shareholders, and a positive next step for all involved," Etsy CEO Kruti Patel Goyal said.
The sale is projected to close in the second quarter of 2026, subject to regulatory approval.
