LivePerson, once worth $4.7 billion, agrees to $43 million sale to SoundHound
The digital customer service pioneer is ending its run as an independent company after a 99% collapse in its market value. SoundHound will acquire the company and its remaining customers while gaining access to its digital voice technology.
After more than two decades as a public company and a 99% collapse in its stock price, LivePerson is nearing the end of its journey as an independent company. The company's shareholders approved its sale to American voice AI company SoundHound AI on Wednesday for $43 million. The price represented a 22% premium over LivePerson's market value at the time of the offer and a 12% premium over its share price at the opening of Wednesday's trading session. LivePerson shares were up 7% on Thursday. The deal is expected to close on September 4.
LivePerson, which developed systems for managing digital conversations between companies and customers and later integrated bots and artificial intelligence into its operations, was founded in 1995. The company went public on Nasdaq in 2000 and began trading in Tel Aviv in March 2011, when it was valued at almost $560 million. At its peak, LivePerson had a market value of $4.7 billion and was even included in the Tel Aviv 25 Index. The company is now worth roughly 1% of its peak value.
Upon completion of the deal, SoundHound is also expected to receive approximately $74 million in LivePerson's cash, before the repayment of convertible bonds that mature this year. LivePerson shareholders will receive 0.47 SoundHound shares for each LivePerson share they own.
LivePerson's peak years came during the coronavirus pandemic. The accelerated shift from human customer service to digital channels increased demand for the technology it developed, sending the company's stock soaring. But the company's failure to turn the rise of AI into sustained growth became a major concern for investors. As part of the deal, LivePerson's remaining customers will move to SoundHound, which plans to connect LivePerson's digital voice systems with its AI capabilities.
LivePerson ended the second quarter of 2026 with a net loss of NIS 216 million, compared with a loss of NIS 53 million in the corresponding quarter of 2025, an increase of approximately 308%. In 2025, the company lost NIS 214 million. It is also carrying almost $400 million in debt.
