UDMY, COUR Stocks Surge After Online Learning Rivals Announce AI-Focused Merger

• The two companies stated that the merger brings together Udemy’s AI-powered skills development marketplace with industry brands under Coursera’s ecosystem.
• The online learning platforms stated that they have a combined pro forma annual revenue of over $1.5 billion.
• Udemy and Coursera anticipate annual run-rate cost synergies of $115 million within 24 months of the closing of the merger.

Udemy Inc. (COUR) shares soared in Wednesday morning’s trade after the company announced a merger with Coursera Inc. (UDMY) to build an AI-focused learning platform.

The joint statement released by the two companies states that the implied equity value of the combined entity is approximately $2.5 billion, based on the closing prices of the COUR and UDMY stocks on Tuesday.

“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 Coursera CEO Greg Hart.

Coursera shares were up nearly 4% in Wednesday morning’s trade, while Udemy shares were up more than 21%. Retail sentiment on Stocktwits around Coursera trended in the ‘extremely bullish’ territory, while users felt ‘bullish’ about Udemy.

AI-Focused Merger

In the announcement, the two companies stated that their consumer and enterprise segments are highly complementary and that the merger brings together Udemy’s AI-powered skills development marketplace with industry brands under Courser’s ecosystem.

“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,” said Udemy CEO Hugo Sarrazin.

The two companies have a combined pro forma annual revenue of over $1.5 billion. They anticipate annual run-rate cost synergies of $115 million within 24 months of the closing of the merger.

Coursera, Udemy’s Strengths

Coursera partners with universities and institutions to offer degree programs and professional certificates. Udemy, on the other hand, has a marketplace of individual instructors who sell courses and subscriptions to businesses.

The two companies expect their AI-driven offerings to help individuals in their careers and businesses in attracting talent.

COUR stock is down 7% year-to-date, while UDMY stock is down 35%.

Also See: TLRY Stock Gained Over 70% In 5 Days, Retail Optimism Spikes Ahead Of Trump's Marijuana Order

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