US online marketplace eBay has agreed to acquire fashion resale platform Depop from Etsy in a $1.2 billion all-cash deal.
The transaction is expected to close in the second quarter of 2026.
Depop will continue to operate under its existing name, brand identity, platform and culture following the acquisition.
Depop operates as a mobile-first consumer-to-consumer (C2C) fashion marketplace.
It generated approximately $1 billion in annual gross merchandise sales (GMS) in 2025, growing nearly 60% year-over-year in the US.
As of December 31, 2025, the platform had seven million active buyers, almost 90% of whom are under 34 years old, and more than three million active sellers.
eBay said the purchase would advance its C2C strategy by expanding engagement with younger shoppers and strengthening its position in resale fashion.
As part of eBay, Depop will gain access to the group’s financial services, shipping capabilities and buyer protection programs, as well as greater exposure to inventory through cross-listing.
eBay plans to finance the acquisition using cash reserves. Etsy said it intends to use the proceeds for general corporate purposes, ongoing share buybacks and investments in its primary marketplace.
The deal received unanimous approval from the boards of directors of both companies and remains subject to customary closing conditions and regulatory approvals.
In a separate announcement, eBay reported revenue of $3 billion in Q4 2025, up 15% on a reported basis and 13% on a currency-neutral (FXN) basis.
Gross merchandise volume (GMV) reached $21.2 billion, up 10% on a reported basis and 8% in FXN terms.
Net income from continuing operations was $525 million, or $1.14 per diluted share, with operating margins of 20.3%.
Operating cash flow from continuing operations was $595 million and free cash flow was $478 million.
The company returned $756 million to shareholders, including $625 million in share buybacks and $131 million in dividends.
For full year 2025, revenue was $11.1 billion, up 8% reported and 7% on an FXN basis, while GMV was $79.6 billion, up 7% reported and 6% on an FXN basis.
Net income from continuing operations was $2 billion, or $4.26 per diluted share, and operating margins were 20.5%.
Operating cash flow reached $2 billion and free cash flow reached $1.5 billion.
eBay returned more than $3 billion to its shareholders during the year, including $2.5 billion in buybacks and $531 million in dividends.
The company also said it expanded its eBay Live shopping service to Germany and Australia.
It also launched a beta version of its AI-enabled Magical Listing tool for new and reactivated US sellers on iOS and Android, and launched an AI-powered business card scanning capability using Smart Lens technology.