Coursera to acquire Udemy in $2.5B deal
What's the story
Online education platform Coursera has announced its plan to acquire rival company Udemy in an all-stock deal valued at $2.5 billion. The merger will create a combined entity worth $2.5 billion, as the industry consolidates after a post-pandemic slowdown and heightened investor scrutiny. Each Udemy shareholder would get 0.8 shares of Coursera for their holdings, valuing the company at around $930 million, Reuters reported citing calculations.
Strategic move
Merger aims to capture corporate AI upskilling demand
The merger of Coursera and Udemy comes at a time when consumer course enrollment growth has slowed down from pandemic highs. This has pushed companies to seek scale and pursue enterprise clients for more predictable subscription revenue. The combined platform will be better positioned to meet corporate demand for workforce training, especially in areas like artificial intelligence (AI), data science, and software development.
Transaction specifics
Deal details and future prospects
The merger deal values Udemy at about $930 million, with Coursera shares rising 6% and Udemy shares jumping about 18%. The offer implies a price of $6.35 per Udemy share, an 18.3% premium. The companies expect the deal to close in the second half of next year, pending regulatory and shareholder approvals.
Market response
Investor caution amid AI upskilling growth
Despite the potential growth opportunity in AI upskilling, investors have been cautious about the sector. Shares of online education companies have lagged broader markets due to concerns over competition, pricing pressure, and uncertain returns from AI-related investments. This year alone, Udemy shares have dropped by some 35% while Coursera's shares are down by roughly 7%.