Why Is Udemy (UDMY) Stock Rocketing Higher Today
Article excerpt
Why is Udemy (UDMY) stock rocketing higher today. What happened? Shares of Udemy (NASDAQ:UDMY) jumped 22% in the afternoon session after its rival in the education technology space, Coursera, announced plans to acquire the online learning platform in an all-stock deal. Under the terms of the merger agreement, Udemy stockholders were set to receive 0.800 shares of Coursera common stock for each share of Udemy they owned. This exchange ratio represented a 26% premium based on the average closing prices of both companies over the 30 trading days before the announcement. The transaction valued the combined company at approximately $2.5 billion. Following the merger, Udemy was to become a wholly owned subsidiary of Coursera. The companies expected the combination to create a comprehensive education technology platform with annual revenue exceeding $1.5 billion and achieve about $115 million in annual cost savings within two years of closing. What is the market telling us. Udemy's shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for Udemy and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 6 days ago when the stock gained 2.9% on the news that KeyBanc reiterated its "Overweight" rating on the stock, and the company announced a new...
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Further boosting sentiment, Udemy announced a partnership with Workera, an AI-powered skills verification platform.