Elliott Said to Build 13% Stake in Online Marketplace Etsy (1)

Elliott Investment Management has built a 13% stake in Etsy Inc., the online marketplace for artisans, people with knowledge of the matter said.

It makes the activist investor the largest shareholder in Etsy, Bloomberg-compiled data show. A representative for Etsy couldn’t immediately be reached for comment.

Marc Steinberg, a partner at Elliott, will join the Etsy board on Feb. 5 and become a member of the company’s audit committee, according to a statement on Thursday.

Shares in Etsy rose as much as 12% on Thursday for their biggest intraday gain in more than a year. The stock was ...