In a significant shift within the online education landscape, Coursera and Udemy announced on December 17, 2025, a definitive all-stock merger agreement that values the combined entity at around $2.5 billion. The merger aims to enhance both platforms’ competitive positioning amid increasing demand for digital learning solutions driven by technological advancements, particularly in artificial intelligence.
Under the terms of the agreement, Udemy shareholders will receive 0.800 shares of Coursera common stock for each Udemy share, representing a 26% premium based on the average closing prices over the preceding 30 days. The deal is anticipated to close in the second half of 2026, pending regulatory and shareholder approvals. Following the merger, existing Coursera shareholders will own approximately 59% of the newly formed entity, with Udemy shareholders controlling 41%.
The merger unites two distinct educational platforms. Coursera, founded in 2012 by Stanford professors Andrew Ng and Daphne Koller, specializes in credentialed courses offered by top universities and industry partners, providing degrees, professional certificates, and enterprise solutions. As of September 2025, Coursera boasts 191 million registered learners. In contrast, Udemy, launched in 2010, operates as an open marketplace featuring over 85,000 instructors who create practical, skills-focused courses for individuals and businesses alike.
Emphasizing the significance of artificial intelligence, the merger press release framed the consolidation as a strategic response to “AI rapidly redefining skills required for every job.” Coursera CEO Greg Hart described the new entity as creating an “agile platform” for mastering emerging skills, while Udemy CEO Hugo Sarrazin noted the expected acceleration in AI-powered product development. The combined platform aims to offer AI-native tools, including personalized learning pathways, skills mapping, and assessments, which align with a rising demand for AI-related courses; Udemy has reported a fivefold increase in enrollments for these courses, totaling over 11 million learners.
The merger anticipates pro forma annual revenue exceeding $1.5 billion, with anticipated annual cost synergies of $115 million within 24 months, primarily from shared technology investments and operational efficiencies. Andrew Ng will retain his role as Chairman of the Board, while Greg Hart will continue as CEO, supported by a board comprising nine directors—six from Coursera and three from Udemy.
While AI is central to the merger’s narrative, it also reflects ongoing challenges within the EdTech sector. The industry saw explosive growth during the COVID-19 pandemic but has since faced a downturn, leading to increased investor scrutiny. Both companies reported revenue growth in the third quarter of 2025—Coursera at $194 million (up 10% year-over-year) and Udemy at $195.7 million (flat year-over-year). However, their share prices remain below the peaks seen in 2021, with Udemy shares down 35% year-to-date, closing at around $5.27 on December 16, while Coursera experienced a 7% decline.
Global EdTech spending is projected to reach $404 billion by 2025, driven by demands for AI integration and workforce reskilling. Despite this growth potential, funding dipped to $2.4 billion in 2024—its lowest level in a decade—prompting consolidation in the sector. This merger aims to create a scalable solution for corporate clients, where stable subscription models are favored over fluctuating consumer sales, enhancing competitiveness against rivals such as LinkedIn Learning and Khan Academy.
The complementary nature of Coursera’s institutional credibility and Udemy’s extensive, instructor-driven catalog could redefine lifelong learning, offering robust solutions that cater to consumers, enterprises, universities, and government segments. Market response has been favorable; Udemy shares surged over 20% following the announcement, while Coursera’s stock increased modestly. Additionally, Coursera has announced plans for a major share repurchase program post-closure.
This merger signals a maturation in the EdTech industry, transitioning from pandemic-driven hype to a focus on sustainable, AI-oriented growth. For learners around the globe, it heralds the potential for more accessible and relevant upskilling opportunities as the workforce adapts to rapidly evolving job requirements. As Andrew Ng has long advocated, education must evolve alongside technology, and this merger positions the combined company to lead that essential transformation.
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