Udemy: The Merger Is A Good Strategy, But I'll Wait For The New Company

Gytis Zizys4.16K FollowersFollow5ShareSavePlay(8min)CommentsSummaryUdemy, Inc. is merging with Coursera, Inc. in an all-stock deal, with 0.8 COUR shares per UDMY share, aiming for $2.5B combined equity value.I see Udemy's strategic pivot to subscription revenue—now 72% of total—deliberately slowing near-term growth for long-term predictability and value.Cost synergies of $115M annually and complementary strengths in enterprise, consumer, and AI content position the merged entity for improved profitability.With the merger premium gone and regulatory risks outstanding, I prefer to wait for the new combined company before considering an investment in UDMY. narvo vexar/iStock via Getty Images Introduction I wanted to take a look at one of the companies I used quite a bit when I was still in university, which helped me quite a bit, and seeing that it went public notThis article was written byGytis Zizys4.16K FollowersFollowMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.