Udemy, Inc. (NasdaqGS: UDMY) is being investigated by law firm Kahn Swick & Foti, LLC regarding the proposed sale to Coursera, Inc. (NYSE: COUR). The investigation focuses on whether the offer price and process are adequate for UDMY shareholders.
Current Situation
The proposed acquisition would combine two major players in the online education space. Udemy operates a marketplace platform connecting instructors with learners, while Coursera partners with universities and institutions to offer courses and degrees. The investigation suggests shareholders may not be receiving fair value in the transaction.
M&A Investigation Context
Kahn Swick & Foti's involvement indicates potential concerns about the deal's valuation. Law firm investigations in M&A transactions typically examine whether:
- The offer price represents fair market value
- The board conducted adequate shopping process
- Conflicts of interest affected negotiations
- Shareholders are receiving all material information
The law firm previously represented shareholders in similar M&A investigations for Ventyx Biosciences (VTYX), Flushing Financial (FFIC), and FONAR Corporation (FONR).
Key Factors
Ed-Tech Consolidation Trend: The proposed sale reflects broader consolidation in online learning. Major education technology companies have been merging to combine content libraries, technology platforms, and user bases.
Strategic Fit: Coursera's university partnerships could complement Udemy's instructor marketplace model. The combined entity would offer both formal academic programs and practical skills training.
Regulatory Scrutiny: M&A transactions in technology sectors often face regulatory review for anti-competitive concerns. The combination of two leading online learning platforms may attract attention from competition authorities.
Prediction
Direction: Bearish Probability: 60% Horizon: 90 days (April 24, 2026) Answer: No
The law firm investigation suggests the offer price may undervalue Udemy. In similar investigated transactions, shareholders often receive increased offers or competing bids emerge. However, if the investigation fails to identify significant deficiencies, the original offer price may stand, limiting upside potential. The 60% probability reflects the likelihood that the investigation results in price improvement or deal termination.
