SoundHound AI stock down 29% over six months as it pursues $43 million acquisition of unprofitable LivePerson

SoundHound is acquiring LivePerson at an equity value of $43 million, using its own stock to pay for the deal and settle LivePerson's outstanding debt. The acquisition is expected to close in the second half of this year.

LivePerson operates through messaging with AI agents (software that autonomously handles tasks like answering questions in chat boxes), while SoundHound specializes in audio-enabled AI for applications in vehicles and restaurant drive-thrus. SoundHound expects the combined company to generate between $350 million and $400 million in revenue by 2027, with LivePerson contributing $100 million.

Both companies are currently unprofitable: LivePerson reported a net loss of more than $67 million in 2025. Investors are concerned about integrating one unprofitable company into another that has struggled for years, which is creating downward pressure on SoundHound's stock price.