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You never know; it might work.
Companies tend to merge so that they can gain market share, reduce operating costs, expand to new territories, unite common products, and grow revenue and profit.
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Mergers and acquisitions have been trending downward since 2021, when more than 33,000 deals were recorded. President Donald Trump's latest round of tariffs could hit M&A activity hard, primarily by creating uncertainty, raising costs and snarling supply chains
Nevertheless, analysts at Piper Sandler recently theorized about a potential merger between online auction platform eBay (EBAY) and another prominent e-commerce company, Etsy, which has been navigating a challenging period.
Etsy CEO: 2024 was a challenging year
Etsy (ETSY) , a platform for selling handmade or vintage items and craft supplies, has been going through some tough times.
The Brooklyn, N.Y., company's stock is down 9.2% since January and nearly 27% from a year ago. Etsy is scheduled to report quarterly results next month,
In February, Etsy, reporting for the fourth quarter, posted a 6.8% decline in gross merchandise sales year over year to $3.7 billion. Its active sellers fell 10% to 8.1 million.
Related: Analyst reworks eBay stock price target on economic uncertainty
Gross merchandise sales refers to the total value of everything sold through a platform or marketplace over a specific period. It is a key metric for understanding the scale of a business's sales and growth.
Last year was challenging for Etsy, a year in which "we underperformed the far higher standards we hold for ourselves as the market leader for special,” Joshua Silverman, Etsy's president and chief executive, told analysts in February.
"We're disappointed as we know you are, and we're working with tremendous urgency and focus to inflect the trajectory of the Etsy marketplace GMS performance," he added.
The company has made several executive changes, including appointing Kruti Patel Goyal president and chief growth officer of Etsy. She had been CEO of Etsy's Depop fashion-resale subsidiary.
“Recent e-commerce growth has been skewed toward those that offer low prices and fast delivery, and that's a game we're unlikely to win," Silverman said. "We also recognize that consumers are shopping and spending their time differently, with more competition than ever for mind share."
In discussing the economic environment, Silverman said "certainly, it won't hurt for consumers to feel more confidence and feel like they are not trying to pinch every single penny.
