DivestmentMay 28, 2026, 04:28 PM
Etsy Depop Sale to eBay Delayed; New $136M Termination Fee Added
AI Summary
Etsy Inc. and eBay Inc. entered a Letter Agreement on May 21, 2026, modifying the previously announced sale of Etsy's subsidiary, Depop Limited. The transaction's expected closing has been delayed from Q2 2026 to the end of Q3 2026. The new agreement introduces a "Business Disruption Fee" of up to $136 million, payable by eBay to Etsy if the sale is terminated under specific conditions, allowing Etsy to continue investing in Depop during the extended pre-closing period.
Key Highlights
- Depop sale closing delayed from Q2 2026 to end of Q3 2026.
- New Letter Agreement signed May 21, 2026, between Etsy and eBay Inc.
- Potential "Business Disruption Fee" payable by eBay to Etsy, up to $136 million.
- Fee ranges from $0 (on or before June 15, 2026) to $136 million (after July 31, 2026) upon termination.
- Original purchase price for Depop is approximately $1.2 billion.
- Existing termination fee of $90 million if regulatory clearances fail.
- Existing additional termination fee of $70 million for certain other termination events.
Price Impact
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