Coursera and Udemy Agree to $2.5B Merger as Edtech Pivots to AI
Coursera and Udemy have reached an agreement on a $2.5 billion all-stock merger, marking one of the largest consolidations in the global online education sector. The deal brings together two of the most recognisable names in digital learning as the industry adjusts to rising demand for AI-related skills and enterprise training.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and shareholder votes, and reflects broader pressure on edtech firms to scale, diversify their revenue streams, and justify long-term investments in artificial intelligence.
Deal Structure and Valuation
Under the terms of the agreement, Coursera will acquire Udemy in an all-stock transaction. Udemy shareholders will receive 0.8 shares of Coursera for each Udemy share they hold.
Based on Coursera’s closing price before the announcement, the offer implies a value of approximately $6.35 per Udemy share, representing a premium of about 18.3%. This places Udemy’s equity valuation at roughly $930 million. Following news of the deal, Udemy’s shares rose nearly 22%, while Coursera’s stock gained around 4%.
Prosus, the global technology investment group majority-owned by South Africa’s Naspers, currently holds approximately 12% of Udemy, lending the transaction regional relevance for African and emerging-market investors with exposure to the global edtech sector.
Strategic Focus on AI and Workforce Upskilling
Both companies have increasingly positioned artificial intelligence at the centre of their product strategies. The merger is framed around growing enterprise demand for workforce upskilling in areas such as generative AI, software development, and data science.
Coursera CEO Greg Hart described the deal as a response to structural changes in the labour market, where AI literacy is becoming a baseline requirement rather than a specialist skill. Corporate learning budgets have increasingly shifted toward short-cycle, skills-based training that can adapt to fast-moving technologies.
Coursera has recently expanded its AI footprint through integrations with OpenAI’s ChatGPT ecosystem and a content partnership with Anthropic. Udemy, meanwhile, has rolled out AI-driven microlearning features designed to deliver shorter, more personalised lessons to professionals.
Combining Two Distinct Business Models
Industry analysts see the merger as a strategic fit due to the complementary nature of the two platforms. Coursera has built its business around partnerships with universities and institutions, offering accredited degrees, professional certificates, and enterprise learning solutions. Udemy operates a marketplace model, allowing independent instructors to sell individual courses and subscription bundles.
Stephen Sheldon, an analyst at William Blair, noted that the overlap in end markets could create opportunities for cost efficiencies while expanding the combined company’s reach across academic, consumer, and corporate learning segments.
The merged entity is expected to maintain both brands while exploring cross-platform content distribution, enterprise bundling, and shared AI infrastructure.
Market Pressures Driving Consolidation
The agreement comes amid ongoing headwinds for publicly traded edtech firms. Despite continued revenue growth, investor sentiment toward the sector has weakened over the past year as companies increased spending on AI development without immediate clarity on returns.
Before the merger announcement, Udemy shares were down approximately 35% year-to-date, while Coursera had declined by around 7%. Competition from in-house corporate training tools, free AI-powered learning resources, and platform fatigue among learners has added further pressure.
Udemy CEO Hugo Sarrazin said the merger is intended to deliver “meaningful benefits” to learners and enterprise customers, while giving shareholders exposure to what he described as the longer-term upside of a combined platform with greater scale.
What Comes Next
If approved, the merger will create one of the largest global digital education platforms, spanning university credentials, professional certificates, enterprise learning, and instructor-led marketplaces. Regulatory review will focus on competition in enterprise learning and professional certification markets, particularly in North America and Europe.
The deal also signals a broader trend in edtech: fewer standalone platforms, deeper enterprise integration, and increased reliance on AI to personalise learning and demonstrate measurable workforce outcomes.
