Online learning giant Coursera announced a definitive agreement to merge with rival Udemy in an all-stock transaction valued at approximately $2.5 billion. The deal, revealed on December 17, 2025, will see Udemy become a wholly owned subsidiary of Coursera upon completion. Udemy shareholders will receive 0.800 shares of Coursera common stock for each Udemy share held, representing a significant premium. This exchange ratio implies a 26% premium based on the 30-day average closing prices prior to the announcement. The merger aims to create a comprehensive platform blending Coursera's university partnerships and accredited programmes with Udemy's vast marketplace of instructor-led courses. Executives from both companies emphasised the strategic fit amid rapid advancements in artificial intelligence reshaping workforce skills.

Coursera, headquartered in Mountain View, partners with over 300 universities and companies like Google and IBM to offer degrees, professional certificates, and enterprise training. Udemy, based in San Francisco, operates an open marketplace with more than 200,000 courses created by independent instructors, focusing on practical, on-demand skills in areas like technology and business. The combination is expected to generate pro forma annual revenue exceeding $1.5 billion for the merged entity. Cost synergies of $115 million on an annual run-rate basis are anticipated within 24 months post-closing. Coursera CEO Greg Hart highlighted the timing, noting AI's role in compressing skill cycles and demanding agile learning solutions. Udemy CEO Hugo Sarrazin echoed this, stating the merger would accelerate AI-powered product development and expand global reach.

Upon closing, Coursera shareholders will own about 59% of the combined company, with Udemy shareholders holding 41% on a fully diluted basis. The board will comprise nine directors, including six from Coursera and three from Udemy, with Andrew Ng remaining as chairman. The merged company will retain the Coursera name and trade under the ticker COUR on the New York Stock Exchange. Udemy's shares will be delisted from Nasdaq following the transaction. Both platforms have recently intensified AI initiatives, with Coursera integrating tools from OpenAI and Anthropic and Udemy launching microlearning experiences. This union positions the entity to better serve individual learners, enterprises, and instructors in an evolving edtech landscape.

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The transaction requires approval from shareholders of both companies as well as regulatory clearances. It is projected to close in the second half of 2026, subject to customary conditions. The deal reflects broader consolidation in online education after post-pandemic enrolment slowdowns and investor pressures. Both Coursera and Udemy have reported revenue growth but faced declining stock prices in 2025, underscoring the need for scale. Analysts view the merger as strategically sound, enhancing competitiveness against emerging AI-driven learning tools. The combined platform could redefine skills discovery and mastery on a global scale.

Market reaction saw Udemy shares surge significantly in initial trading following the announcement, while Coursera experienced some volatility. The merger underscores the growing demand for AI literacy and continuous upskilling across industries. With over 270 million registered learners collectively, the new entity aims to address talent transformation challenges worldwide. Integration of complementary strengths is expected to drive innovation in personalised, outcome-focused education. Stakeholders anticipate enhanced value for customers through broader content choices and improved experiences.

This all-stock merger marks a pivotal consolidation in the digital learning sector, uniting two prominent players to navigate AI disruptions. Coursera's enterprise focus and academic credentials complement Udemy's dynamic, marketplace-driven model effectively. The anticipated synergies and revenue scale position the combined company for sustained growth in a competitive market. As workforce needs evolve rapidly, the platform seeks to empower learners and organisations with relevant, accessible skills training. Future updates on regulatory progress and integration plans will be closely watched by investors and the edtech community. The deal highlights the transformative potential of strategic alliances in education technology.

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