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Stock impact report

Why Coursera (COUR) Shares Are Sliding Today [Yahoo! Finance]

Udemy, Inc. (UDMY) 
Company Research Source: Yahoo! Finance
announced a definitive all-stock merger with competitor Udemy in a deal valued at approximately $2.5 billion. Under the terms of the agreement, Coursera shareholders were expected to own about 59 percent of the combined entity, with Udemy shareholders owning the remaining 41 percent. The companies projected annual cost savings of around $115 million within two years. Despite the potential for creating a larger learning platform, the market reacted negatively. This response may have been influenced by the all-stock nature of the transaction, which can dilute the value for existing shareholders. Adding to the cautious sentiment, UBS had lowered its price target on Coursera from $11.00 to $9.00 a day before the announcement, while keeping a Neutral rating. The shares closed the day at $7.58, down 6.8% from previous close. The stock market overreacts to news, and big price drops can present good opportunties to buy high-quality stocks. Is now the time to buy Coursera? Access our ful Show less Read more
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