Prime Highlights
- Etsy shares jumped more than 14% after announcing that eBay will acquire its secondhand fashion platform Depop in a $1.2 billion cash deal.
- The acquisition strengthens eBay’s push into fashion resale, with CEO Jamie Iannone highlighting Depop’s appeal to younger shoppers.
Key Facts
- eBay reported adjusted fourth-quarter earnings of $1.41 per share on $2.97 billion in revenue, beating analyst expectations, while gross merchandise volume rose 10% to $21.2 billion.
- eBay forecast first-quarter earnings between $1.53 and $1.59 per share on revenue of $3 billion to $3.05 billion, above Wall Street projections.
Background
Etsy shares rose more than 14% in extended trading on Wednesday after the company announced that eBay will acquire its secondhand fashion platform Depop for approximately $1.2 billion in cash.
The agreement comes nearly five years after Etsy purchased Depop for about $1.62 billion. At the time, Etsy aimed to strengthen its reach among younger consumers. Around 90% of Depop’s users are under the age of 34, according to the company.
Etsy CEO Kruti Patel Goyal said the sale allows the company to focus fully on growing its core marketplace and supporting buyers and sellers. The transaction is expected to close in the second quarter of the year.
In recent years, Etsy adopted a “house of brands” strategy and acquired several niche platforms to compete with larger rivals such as Amazon. However, the company later reversed course, selling Brazilian marketplace Elo7 in 2023 and musical instrument platform Reverb last year.
For eBay, the acquisition strengthens its position in fashion resale. CEO Jamie Iannone said Depop will help expand the company’s presence in one of its fastest-growing categories and attract younger shoppers.
eBay shares gained more than 8% in extended trading after reporting fourth-quarter results that exceeded expectations. The company posted adjusted earnings of $1.41 per share on revenue of $2.97 billion, beating analyst estimates. Gross merchandise volume increased 10% to $21.2 billion.
For the first quarter, eBay forecast adjusted earnings between $1.53 and $1.59 per share on revenue of $3 billion to $3.05 billion, above Wall Street projections.
