Coursera announces acquisition of Udemy in AI education bid – News

Comprehensive global e-learning platform Coursera Inc. today announced a merger agreement with prominent online education platform Udemy, Inc.

According to Reuters, Coursera will buy Udemy in an all-stock deal. Based on the closing prices of the companies’ common stock on Dec. 16, the combined company emerges with an implied equity value of about $2.5 billion.

This deal brings together the two largest United States-based online education platforms into one company under the Coursera brand. It comes at a time when there is a growing skills gap in addressing artificial intelligence and increasing automation is affecting the labor force.

“We’re at a pivotal moment in which AI is rapidly redefining the skills required for every job across every industry,” said Coursera Chief Executive Greg Hart. “Organizations and individuals around the world need a platform that is as agile as the new and emerging skills learners must master.”

Udemy focuses on individual instruction from experts and industry professionals, providing unique hands-on experience from within domains of knowledge. It focuses on a broad range of practical and in-demand skills offered through over 250,000 courses.

Coursera distinguishes itself through partnerships with top universities — including Yale and Stanford — and companies such as Google LLC and IBM Corp. to offer university-level content. It offers accredited credentials and full degrees from academic institutions alongside career-focused education.

Udemy CEO Hugo Sarrazin said the merged companies would enable the company to accelerate its AI-powered product roadmap and expand its reach to where workers need education most. “Through this combination with Coursera, we will create meaningful benefits for our learners, enterprise customers, and instructors, while delivering significant value to our shareholders, who will participate in the substantial upside potential of the combined company,” added Sarrazin.

The strategic rationale for the merger included the highly complementary, although similar, roles that the two companies hold in the market. It will establish a comprehensive ecosystem for both universities and expert instruction, while bridging the gap with AI-enabled tools.

As per a report from market analysis firm The Business Research Private Ltd., the global online education industry market size was valued at around $68 billion in 2024 and is expected to reach $184 billion in 2029. Key players in the industry include the aforementioned Coursera and Udemy, in addition to Adobe Inc., Stride Inc., NetEase Inc. and Google LLC’s parent company, Alphabet Inc.

Factors driving current market growth include the advance of technology, expanding internet access, the expansion of remote employment and cost effectiveness. Increased adoption of AI and adaptive learning were also singled out as growth indicators. North America remains the largest market share in the industry, with Asia-Pacific the fastest growing.

The two companies put significant value in the adoption of AI-native innovation, noting that shared product data and technology investments would put Coursera on a course to provide best-in-class education, and improve both career and business opportunities for customers.

The long-term financial profile for the merged Coursera’s outlook includes an anticipated $115 million in operating cost reduction within 24 months of closing.

The transaction is expected to close in the second half of 2026, subject to regulatory approvals and shareholder approval.

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