Etsy Divests Depop for $1.4 Billion to Focus on Core Marketplace
The e-commerce company recognized a gain on sale of $805 million following the divestiture of its Depop unit.
Etsy (ETSY), the online marketplace for handmade and vintage goods, completed the sale of Depop to eBay Inc. on July 30, 2026.
The transaction provided aggregate cash consideration of approximately $1.4 billion. This total consisted of a $1.2 billion base price and $200 million in interest and net purchase price adjustments.
The divestiture resulted in a recognized gain on sale of $805 million in accumulated deficit, pro forma as of March 31, 2026. Depop was reclassified as a discontinued operation starting with the company's first-quarter report ended March 31, 2026.
Following the sale, Etsy shifted its strategic focus to exclusively drive growth for its core marketplace.
The company plans to use the proceeds from the Depop sale to accelerate its share repurchase program. This move follows a capital allocation strategy the company outlined on April 29th.