Etsy announced on Wednesday that it has agreed to sell the second-hand clothing marketplace app Depop to eBay for approximately $1.2 billion. The sale price is lower than the $1.6 billion Etsy paid to acquire Depop five years ago, indicating a loss on the divestment. This decision marks a sharp reversal from the company's previous stance—as recently as last December, Etsy executives were publicly emphasizing their commitment to investing in Depop's growth. Following the announcement, Etsy's stock surged over 14% in pre-market trading. Although Depop's scale is significantly smaller than Etsy's core business, with a transaction volume of around $1 billion in 2025, it had been a key area of strategic growth focus for the company. Etsy invested substantial marketing resources to promote the UK-originated platform to US consumers, and these ongoing expenditures consistently weighed on the company's overall profit margins. Former Etsy CEO Josh Silverman commented to analysts during a conference in December: "This is a phase of concentrated marketing investment aimed at increasing awareness for a business we believe has significant growth potential." Silverman stepped down as CEO in early 2026 and was succeeded by Kruti Patel Goyal, who previously oversaw the Depop business.