Coursera Announces $500 Million Buyback One Week After Udemy Merger
May 18, 2026 – 4:59 pm
Image by: LinkedIn
TL;DR:
Coursera has approved a $500 million share repurchase program, its first buyback since going public in 2021. This comes just one week after completing its $2.5 billion all-stock merger with Udemy. The board approved the program on Sunday, May 18, 2026, funding it from existing cash balances and cash flow from operations, with no fixed expiration date.
The Udemy Merger in Context
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Coursera closed its combination with Udemy on May 11, 2026, creating what it calls the world’s most comprehensive skills platform. Under the terms of the merger:
- Udemy stockholders received 0.800 shares of Coursera common stock for each Udemy share.
- Former Coursera shareholders hold approximately 59% of the combined entity, while former Udemy shareholders hold roughly 41%.
- The merged company offers more than 315,000 courses through 290 million registered learners, 95,000 instructors and content creators, and hundreds of university and industry partners.
Both platforms will continue to operate separately for now. Learners, instructors, and enterprise customers retain their existing accounts, subscriptions, and agreements on Coursera.org and Udemy.com respectively. Integration is planned but no timeline has been published.
The Financial Profile of the Combined Entity
The combined company reported 2025 revenue exceeding $1.5 billion and guided for full-year 2026 revenue of $805 million to $815 million. It aims to achieve $115 million in annual cost synergies within 24 months following the merger’s closure, a target that will be closely scrutinized by analysts doubtful about potential cannibalization.
Why a Buyback Now?
Share repurchase programs are standard for returning capital to shareholders, and Coursera’s decision to launch one immediately after a major merger is strategic. The $500 million authorization represents a significant commitment relative to Coursera’s market capitalization and serves several purposes:
- Supporting the stock price: During a period of dilution from issuing new shares.
- Signaling confidence: In the combined company’s undervalued stock.
- Returning capital: To shareholders while integrating a major acquisition.