Why Udemy Stock Surged Today
Key Points
Coursera is seeking to acquire Udemy in an all-stock deal.
Coursera's bid comes at a significant premium to Udemy's recent trading prices.
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Shares of Udemy (NASDAQ: UDMY) leaped on Wednesday after the online learning marketplace struck a merger deal with rival Coursera (NYSE: COUR).
As of 3:25 p.m. EST, Udemy's stock price was up more than 12% after rising as much as 33% earlier in the day.
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An enticing offer for Udemy's investors
Under the terms of the agreement, Udemy shareholders would receive 0.8 shares of Coursera stock for each share of Udemy they own. At the time of the announcement, that equated to a premium of 26% to the average closing price of Udemy's shares over the last 30 trading days.
The transaction is projected to close by the second half of 2026, subject to regulatory and shareholder approval.
Stronger together than apart
The merger would bring together Udemy's individual instructor-led marketplace with Coursera's university degree and professional certificate offerings. The combined company would hold a leading presence in the online education industry, with pro forma annual revenue of over $1.5 billion.
Moreover, the merged enterprise would likely be significantly more profitable. Management sees the potential for annual cost synergies of up to $115 million within two years post-closing.
Accelerating AI-focused training
Importantly, the two companies would also have greater capacity to invest in artificial intelligence (AI) and other advanced technologies.
"We're at a pivotal moment in which AI is rapidly redefining the skills required for every job across every industry," Coursera CEO Greg Hart said in a press release. "Organizations and individuals around the world need a platform that is as agile as the new and emerging skills learners must master."
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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