Etsy has completed the sale of fashion resale marketplace Depop to eBay for approximately $1.4 billion in cash. The total reflects a purchase price of $1.2 billion plus approximately $200 million in net purchase price adjustments and interest. The final proceeds remain subject to certain post-closing adjustments.
The deal closed after the companies satisfied the required conditions and received regulatory approvals.
Etsy plans to use the proceeds for general corporate purposes consistent with the capital allocation strategy described in its April 29 shareholder letter.
That strategy included plans to accelerate Etsy’s share repurchase program.
The divestiture allows Etsy to concentrate its resources on the Etsy marketplace and its long-term growth strategy.
Depop will continue operating as part of eBay, giving the online marketplace a community-oriented fashion resale brand with a younger user base.
Etsy acquired Depop in 2021 as part of an effort to expand its portfolio of online marketplaces. The completed sale separates the businesses and returns Etsy’s focus to its core platform for creative and unique goods.
KEY QUOTES:
“We are excited for what’s next for both Etsy and Depop. This transaction allows us to move forward with a clear focus on building the best marketplace for Etsy’s buyers and sellers, and is a strong outcome for our shareholders.”
“We’re proud of what the Depop team has built, a truly differentiated brand with a passionate community, and we wish them continued success as part of eBay.”
Kruti Patel Goyal, CEO of Etsy
