Jon Quast

more of its users right there on its platform.

It wants to handle more of the transaction.

And so this is exactly the kind of quarter that booking wants to see.

It was good growth.

It's a head scratcher that the market didn't like it.

That's a really good question, Tyler.

As I have read the headlines, it seems like everyone is calling this a win-win.

It's a win for eBay because eBay is thriving and it's going to acquire this higher growth platform in Depop, whereas Etsy is struggling, but it gets to shed a distraction and get some cash.

It's a win-win, right?

But I think that Etsy is the much bigger winner here, and I'll explain why.

eBay is acquiring Depop for a little bit more than its trailing gross merchandise sales.

This isn't Depop's revenue.

Rather, this is sales on its platform.

Depop takes a cut of that.

But Depop, around $1 billion in gross merchandise sales.

eBay is acquiring it for a little more than that.

For perspective, both eBay and Etsy trade for less than half of their own merchandise sales.

Basically, the deal values Depop at double the price of eBay and Etsy if we're valuing it from that perspective.

Now, to be fair, Depop is growing really fast.

The adoption numbers are good here.