Coursera is making a big bet on consolidation in online education by acquiring rival Udemy in an all-stock deal that values the combined entity at about $2.5 billion. The merger brings together two platforms that have historically followed very different approaches to online learning, but are perhaps forced to join forces, thanks to AI led disruption.
Coursera built its business around partnerships with universities and large enterprises, while Udemy grew through an open marketplace powered by independent instructors. But now, both companies see greater scale and a broader range of offerings as essential to staying competitive and relevant in a fast-changing, AI-driven skills economy.
Under the terms of the agreement, Coursera will acquire Udemy in a stock-for-stock transaction, with Udemy shareholders receiving Coursera shares in exchange for their holdings. Once the deal is completed, Udemy will become a wholly owned subsidiary and its shares will no longer trade publicly.
The combined company will continue to operate under the Coursera name and remain listed on the New York Stock Exchange. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and approval from the shareholders of both companies. Coursera’s current chief executive will continue to lead the combined company, while its chairman will remain in place following the merger. The board will include representatives from both organizations.
Scale is a major factor in this deal. Together, Coursera and Udemy reach tens of millions of learners around the world and serve thousands of corporate, government, and institutional customers. On a combined basis, the company is expected to generate more than $1.5 billion in annual revenue, giving it significantly greater financial weight in a competitive and increasingly crowded edtech market. Management has also said the merger should unlock about $115 million in cost savings within two years of closing, largely by cutting overlapping costs across operations, technology infrastructure, and sales and marketing functions, while using the larger platform to operate more efficiently globally.
Most importantly, artificial intelligence sits at the center of the merger’s long-term strategy. Both platforms have seen strong growth in demand for AI-related courses, including machine learning, data analytics, cloud computing, and software engineering. Particularly, enterprises are under pressure to reskill employees as AI tools are adopted across engineering, marketing, finance, and operations. The merged company plans to invest more heavily in AI-powered personalization, using data from its expanded user base to recommend courses, build learning paths, and improve outcomes for both individual learners and organizations.
The timing of this move becomes critical as the edtech industry faces significant challenges. After the pandemic-driven boom, many online learning platforms are now dealing with slower user growth, weakening engagement, and mounting competition. Even investors and companies alike have become more cautious, as the rapid expansion of the past few years has given way to a more crowded and demanding market.
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