LivePerson Agrees to $43 Million Sale After 99% Value Collapse

LivePerson, a company that pioneered digital customer service solutions, is set to be acquired by SoundHound AI for $43 million, marking a dramatic end to its over two decades as a public entity. The sale, approved by LivePerson shareholders on Wednesday, represents a significant decline from its peak valuation.

At its height, LivePerson was valued at $4.7 billion. The current sale price reflects a mere 1% of that peak. The company, founded in 1995 and listed on Nasdaq in 2000, also traded on the Tel Aviv Stock Exchange starting in March 2011 at a valuation of nearly $560 million. The acquisition price offers a 22% premium over the company's valuation at the time of the offer and a 12% premium over its opening stock price on the day of the announcement. LivePerson's stock saw a 7% increase following the news.

The deal is expected to close on September 4. SoundHound AI will also acquire approximately $74 million in cash from LivePerson, prior to the repayment of convertible bonds due this year. LivePerson shareholders will receive 0.47 shares of SoundHound AI for each LivePerson share they own.

LivePerson experienced a surge in demand during the COVID-19 pandemic as businesses rapidly shifted from human-powered call centers to digital services. However, the company struggled to leverage artificial intelligence for immediate growth, leading to a loss of investor confidence. In the second quarter of fiscal year 2026, LivePerson reported a loss of 216 million shekels, a substantial increase from the 53 million shekels lost in the same period the previous year. The company also carries nearly $400 million in debt.

Upon completion of the acquisition, LivePerson's remaining customers will transition to SoundHound AI, which plans to integrate LivePerson's digital conversation systems with its own AI capabilities.