M&A News: Online Educators Coursera and Udemy Get Top Marks after AI-Driven $2.5B Merger

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.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential 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, not just in education but in other sectors of industry and society.