Shares in online education platform Coursera (COUR) were marked higher today as it said it was merging with peer Udemy (UDMY), valuing the new business at $2.5 billion.
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Coursera Promises AI Focus
The deal brings together two of the largest U.S.-based online learning platforms as the sector consolidates following a post-pandemic slowdown in consumer demand, with companies seeking scale, enterprise customers and more predictable subscription revenue.
The new venture will also be heavily focused on developing AI services in online education. The global digital education market size is estimated to grow from $24.10 billion in 2025 to $222.32 billion by 2035.
Cutting-edge tools, including Artificial Intelligence (AI) and Virtual Reality (VR), will help drive that growth.
“We’re at a pivotal moment in which AI is rapidly redefining the skills required for every job across every industry. Organizations and individuals around the world need a platform that is as agile as the new and emerging skills learners must master,” said Greg Hart, CEO of Coursera. “We will be in an even stronger position to address the global talent transformation opportunity.”
Hugo Sarrazin, CEO of Udemy, added: “As a united platform, we can accelerate our AI-powered product roadmap, expand our global reach through enhanced go-to-market capabilities, and unlock substantial revenue and operating synergies that will strengthen our long-term financial profile.”
AI Struggling to be Class Leader
Both companies’ share prices have suffered this year, not just by that demand slowdown but also growing skepticism around the growth of AI in education and other sectors of industry and society.
Despite that, Coursera revealed in its Q3 earnings that it had doubled its GenAI course catalog, now featuring over 1,000 courses with 14 enrollments per minute. It also became the first online learning platform to be embedded directly in ChatGPT and announced a content partnership with AI research company Anthropic.
Today’s transaction has been unanimously approved by the Boards of Directors of both Coursera and Udemy. It is expected to close by the second half of 2026.
Is COUR a Good Stock to Buy Now?
On TipRanks, COUR has a Moderate Buy consensus based on 7 Buy and 6 Hold ratings. Its highest price target is $14. COUR stock’s consensus price target is $12.50, implying a 57.43% upside.
