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SoundHound AI: Will LivePerson Deal Revive Stock?
31 May
Summary
- SoundHound AI's stock has fallen approximately 29% in six months.
- The company is acquiring LivePerson for $43 million in stock.
- LivePerson generated $243.7 million revenue in 2025, SoundHound $169 million.
SoundHound AI (NASDAQ: SOUN) has experienced a significant stock decline, with shares down roughly 29% over the past six months. This downturn persists despite the company reporting record revenue in the first quarter. The primary concern for investors centers on SoundHound's pending acquisition of LivePerson (NASDAQ: LPSN) for an equity value of $43 million.
This strategic move aims to integrate LivePerson's messaging-based AI agents into SoundHound's audio-enabled AI platform. The acquisition is anticipated to close in the second half of this year. If successful, SoundHound expects to cross-sell products, potentially unlocking a substantial new revenue stream. In 2025, LivePerson generated $243.7 million in revenue, significantly exceeding SoundHound's $169 million.
However, investors are wary of two key issues. Firstly, SoundHound is financing the acquisition and settling LivePerson's debt using its own stock, which could dilute existing shareholders. Secondly, both companies are currently unprofitable. LivePerson reported a net loss exceeding $67 million in 2025, raising concerns about integrating two loss-making entities.
Looking ahead, SoundHound projects that LivePerson will contribute an additional $100 million in revenue by 2027, aiming for a total revenue between $350 million and $400 million. The company currently has no debt and expects to remain debt-free post-acquisition.
