Form 4: Udemy Merger Completes, Lydia Paterson's Stake Adjusted

Lydia Paterson's beneficial ownership of Udemy, Inc. common stock and options has been adjusted following the company's merger with Coursera, Inc.

Summary

• This filing reports changes in beneficial ownership for Lydia Paterson, a Director at Udemy, Inc. (UDMY).
• The changes are a result of the merger between Udemy, Inc. and Coursera, Inc., effective May 11, 2026.
• Lydia Paterson's common stock holdings were converted as part of the merger.
• Her stock options were also converted, with some underwater options being cancelled.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, primarily reporting on the mechanical adjustments to ownership following a completed merger, rather than providing new operational or financial performance data.

Positives

• The merger with Coursera, Inc. has been successfully completed, indicating a significant strategic event for Udemy.
• Lydia Paterson's stock options were converted into Coursera Common Stock, preserving some value from her previous holdings.

Negatives

• Underwater Udemy Stock Options were cancelled for no consideration, meaning some option holders may have lost value.
• The conversion ratio of 0.800 shares of Coursera Common Stock for each share of Udemy Common Stock may result in a perceived dilution for former Udemy shareholders.

Risks

• Integration risks associated with the merger between Udemy and Coursera could impact future performance.
• Potential for employee retention issues post-merger, especially for those whose stock options were cancelled.
• Market reaction to the combined entity's strategy and financial performance post-merger.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from management regarding future financial performance. The primary information relates to the completion of the merger and the resulting adjustments to beneficial ownership.

Industry Context

StockSavvy.ai notes that this Form 4 filing reflects a significant consolidation event in the online education technology sector, with Udemy merging into Coursera. Such mergers are often driven by the pursuit of economies of scale, expanded market reach, and enhanced competitive positioning against other major players in the EdTech landscape.

Stakeholder Impact

• Shareholders: Former Udemy shareholders now hold Coursera Common Stock, with their holdings converted based on the merger agreement.
• Employees: Employees holding Udemy stock options have had them converted into Coursera stock options, with potential value loss for underwater options.
• Management: Directors and officers, like Lydia Paterson, have seen their beneficial ownership adjusted due to the merger.

Next Steps

• Shareholders will now hold Coursera Common Stock.
• The combined entity will operate under Coursera's structure.

Key Dates

Keywords

SEC Form 4, Udemy, Coursera, Merger, Beneficial Ownership, Stock Options, Director, Lydia Paterson, UDMY