Coursera to Acquire Udemy in $2.5 Billion Deal

Coursera and Udemy highlighted artificial intelligence as a central pillar of their merger rationale, saying the combined company would equip the global workforce with critical AI skills.

In a joint statement, the companies said the merger would expand their “capacity for sustained investment in AI-driven platform innovation, rapid product development, and durable growth initiatives.”

The messaging aligns with both companies’ increasing focus on AI ahead of the deal. During Coursera’s outlook and strategy call in November, executives referenced AI more than 50 times.

CEO Greg Hart emphasized the company’s “AI-enabled platform,” which includes its AI tutor, Coursera Coach.

“We need to continue to accelerate our development cycles to leverage AI and data to improve the learner experience and continuously enhance our capabilities across all areas of the platform,” Hart said.

On Coursera’s most recent earnings call, Hart described generative AI as “the most in-demand skill in Coursera’s history,” noting that an average of 14 users per minute were enrolling in one of the platform’s roughly 1,000 generative AI courses.

Coursera has also partnered with OpenAI to integrate its platform directly into ChatGPT, allowing the AI tool to access Coursera’s videos and educational content.

Udemy has similarly positioned AI as a key growth driver. On its October earnings call, CEO Hugo Sarrazin said companies are heavily investing in AI transformation but are struggling to generate returns due to gaps in workforce capabilities.

“Many haven’t developed the core skills required to extract value from their investments,” Sarrazin said.

Despite the enthusiasm, both companies have acknowledged potential risks associated with AI.

In its latest filing with the U.S. Securities and Exchange Commission, Coursera warned that demand for AI skills and its own AI-driven products may not grow as expected.

The company also cautioned that AI could disrupt demand for online learning platforms, including its own.

That risk has already materialized for edtech firm Chegg, which recently announced plans to lay off nearly half its workforce after multiple quarters of declining revenue.

Chegg executives have attributed the downturn to reduced website traffic following the rollout of Google’s AI-generated search summaries.

For now, Coursera and Udemy remain financially stable. Each company reported more than $550 million in revenue during the first nine months of its fiscal year, representing year-over-year growth.

While Coursera continues to operate at a loss, Udemy posted $6.1 million in net income over the same period, reversing a $75.4 million loss recorded a year earlier.

Coursera currently holds a higher market valuation, with a market capitalization of $1.3 billion compared to Udemy’s $948.7 million. Under the proposed transaction, pending regulatory and shareholder approvals, Udemy shareholders will receive 0.8 shares of Coursera stock for each Udemy share they own.