In a landmark consolidation for the online education sector, Coursera and Udemy announced on December 17, 2025, a definitive all-stock merger agreement valuing the combined company at approximately $2.5 billion.
Under the terms, Udemy shareholders will receive 0.800 shares of Coursera common stock for each Udemy share, representing a 26% premium based on the 30-day average closing prices prior to the announcement.
Upon closing - expected in the second half of 2026, pending regulatory and shareholder approvals - existing Coursera shareholders will own about 59% of the new entity, with Udemy holders controlling 41%.
The deal unites two platforms that, despite superficial similarities, operate in distinct niches: Coursera, co-founded in 2012 by Stanford professors Andrew Ng and Daphne Koller, focuses on credentialed courses from top universities and industry partners, offering degrees, professional certificates, and enterprise solutions.
As of September 2025, it boasts 191 million registered learners. Udemy, launched in 2010, functions as an open marketplace with over 85,000 instructors creating practical, skills-focused courses, serving both individuals and businesses.
AI at the Forefront: More Than Just Buzzwords
The joint press release heavily emphasizes artificial intelligence, positioning the merger as a response to "AI rapidly redefining skills required for every job." Coursera CEO Greg Hart described the combination as creating an "agile platform" for mastering emerging skills, while Udemy CEO Hugo Sarrazin highlighted accelerated AI-powered product development.
The merged entity aims to deliver AI-native tools like personalized pathways, skills mapping, and assessments.
This focus aligns with surging demand: AI-related course enrollments on Udemy grew fivefold in recent years, reaching over 11 million learners. Coursera has integrated with OpenAI's ChatGPT ecosystem and partnered with Anthropic for responsible AI content.
The combined platform projects pro forma annual revenue exceeding $1.5 billion, with $115 million in anticipated annual cost synergies within 24 months - largely from shared tech investments and operational efficiencies.
Andrew Ng, Coursera's co-founder and a pioneering AI figure, will remain Chairman of the Board. Greg Hart will continue as CEO, with the board comprising nine directors (six from Coursera, three from Udemy).
Beneath the Hype: Post-Pandemic Realities in EdTech
While AI dominates the narrative, the merger reflects broader EdTech challenges. The sector boomed during COVID-19 but cooled afterward, with investor scrutiny intensifying. Both companies reported revenue growth in Q3 2025 - Coursera at $194 million (up 10% YoY) and Udemy at $195.7 million (flat YoY) - yet shares lagged far below 2021 IPO peaks. Udemy stock fell 35% year-to-date through mid-December 2025, closing at around $5.27 on December 16, while Coursera declined 7%.
Global EdTech spending is projected to hit $404 billion by 2025, driven by AI and workforce reskilling needs. However, funding dipped to $2.4 billion in 2024 (lowest in a decade), pushing consolidation. This deal creates scale for corporate clients - where predictable subscriptions trump volatile consumer sales - and enhances competitiveness against rivals like LinkedIn Learning or Khan Academy.
Synergies and the Path Forward
The complementary models promise real value: Coursera's institutional credibility paired with Udemy's vast, instructor-driven catalog could redefine lifelong learning. The combined reach spans consumer, enterprise, university, and government segments, with enhanced localization and go-to-market capabilities.
Market reaction was positive: Udemy shares surged over 20% post-announcement, Coursera rose modestly. Coursera also plans a significant share repurchase program post-closing.
This merger signals EdTech's maturation: From pandemic-fueled hype to sustainable, AI-centric growth. For learners worldwide, it could mean more accessible, relevant upskilling - just as jobs evolve faster than ever. As Andrew Ng has long advocated, education must adapt to technology's pace; this deal positions the new Coursera to lead that charge.
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Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
