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

LivePerson, a company that once commanded a valuation of $4.7 billion, has agreed to be sold for $43 million to the American firm SoundHound AI, marking the end of its more than two decades as a public entity. The sale, approved by shareholders on Wednesday, represents a 99% drop in the company's value from its peak.

The acquisition price offers a premium of 22% over the company's valuation at the time of the offer and 12% above its stock price at the market open on the day of the announcement. LivePerson's stock saw a 7% increase following the news. The transaction is slated for completion on September 4.

Founded in 1995, LivePerson developed systems for managing digital customer conversations, later integrating bots and artificial intelligence. The company went public on Nasdaq in 2000 and was listed on the Tel Aviv Stock Exchange in March 2011 with a valuation of nearly $560 million. At its zenith, LivePerson traded at a market cap of $4.7 billion and was part of the Tel Aviv 25 index, meaning its current sale price is approximately 1% of its former peak value.

Upon closing the deal, SoundHound AI is expected to 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's peak performance coincided with the COVID-19 pandemic, as the accelerated shift from human call centers to digital services boosted demand for its technology. However, investor interest waned as the company struggled to leverage AI for immediate growth. SoundHound AI plans to integrate LivePerson's digital conversation systems with its own AI capabilities, and remaining LivePerson customers will transition to SoundHound.

The company has faced significant financial challenges, reporting a loss of 216 million shekels in the second quarter of 2026, a substantial increase from the 53 million shekel loss in the same period the previous year. In 2025, the company lost 214 million shekels and is currently managing a debt of nearly $400 million.