Freshfields LLP is guiding eBay Inc. on its planned acquisition of Depop, a fast-growing mobile fashion resale marketplace, from Fenwick & West LLP-advised Etsy Inc. for about $1.2 billion in cash, as the online commerce giant seeks to expand its reach among younger consumers.

The boards of both companies have unanimously approved the deal, which is expected to close in the second quarter of 2026, subject to regulatory approvals and other customary conditions, according to a joint deal announcement Wednesday from the companies.

EBay plans to fund the acquisition with cash on hand, while Etsy intends to use proceeds for general corporate purposes, share repurchases, and investments in its core marketplace, the companies said.

Depop, known for targeting Generation Z and millennial shoppers, generated roughly $1 billion in gross merchandise sales in 2025, with nearly 60% growth in the U.S., according to the announcement.

The platform has about 7 million active buyers, almost 90% of them under 34, and more than 3 million active sellers, it said.

"Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth," eBay CEO Jamie Iannone said in the announcement.

Fashion represents more than $10 billion in annual gross merchandise volume for eBay and was one of its fastest-growing categories in 2025, the company said.

Iannone said the acquisition would help eBay reach younger buyers while leveraging its global scale, shipping solutions, and services such as its Authenticity Guarantee.

Etsy CEO Kruti Patel Goyal said the sale allows the company to focus on its core marketplace while providing "a positive next step for all involved."

Depop will retain its brand, platform, and culture under eBay, according to the announcement.

Depop CEO Peter Semple said joining eBay would accelerate growth in the U.S. and beyond, calling the deal "a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand's place in the world."

The Freshfields team advising eBay is led by partners Ethan Klingsberg and Zheng (Jonathan) Zhou.

The Fenwick team advising Etsy is led by partners Ken Myers and Bomi Lee.