Etsy Stock Pops 14% on Sale of Depop to eBay for $1.2 Billion
Etsy Stock Surges on Sale of Depop to eBay
Etsy, the online marketplace for handmade and vintage items, has seen its stock price surge 14% after the company announced the sale of Depop, a social marketplace for buying and selling goods, to eBay for $1.2 billion.
The acquisition is seen as a strategic move by eBay to expand its presence in the social commerce space and tap into the younger demographic that Depop has attracted. Depop has been a popular platform for Gen Z users, with over 20 million active users worldwide.
Etsy, which acquired Depop in 2021, has stated that the sale will allow it to focus on its core marketplace business. The company has been under pressure to improve its profitability and has been exploring various options to boost its growth.
The sale of Depop to eBay is seen as a positive development for Etsy, as it will allow the company to shed some of its non-core assets and focus on its core business. The acquisition is also seen as a vote of confidence in the social commerce space, which has been growing rapidly in recent years.
Impact on Etsy's Stock Price
The news of the sale has sent Etsy's stock price soaring, with the company's shares rising 14% in pre-market trading. The stock has been under pressure in recent months, but the sale of Depop has provided a much-needed boost to the company's stock price.
eBay's Acquisition Strategy
The acquisition of Depop is part of eBay's strategy to expand its presence in the social commerce space. The company has been investing heavily in its social commerce platform, which allows users to buy and sell goods on the platform.
Conclusion
The sale of Depop to eBay is a significant development for the social commerce space, and it is expected to have a positive impact on Etsy's stock price. The acquisition is also seen as a vote of confidence in the social commerce space, which has been growing rapidly in recent years.
Sources
[1] Etsy stock pops 14% on sale of Depop to eBay for $1.2 billion