Long Term Returns of Jeff Smith’s 5 Activist Targets

4. LivePerson, Inc. (NASDAQ:LPSN)

Activist Investment: 2022
Long Term Returns: 17.3% Gain
S&P 500 Gain: 22.7%

LivePerson, Inc. (NASDAQ:LPSN) is a software company that uses conversational artificial intelligence. Its Business segment leverages Conversational Cloud’s intelligence engine to connect with consumers, while the consumer segment facilitates online transactions between experts and users seeking information.

LivePerson, Inc. (NASDAQ:LPSN) stock jumped by 11% in early 2022 after activist investor Starboard Value confirmed an 8.5% stake in the company and plans to nominate directors to the board. Mid-that year, the company reached an agreement with the activist investor on appointing new independent directors, with one slot being reserved for the investor.

The investment and the board appointment came as LivePerson, Inc. (NASDAQ:LPSN) was undergoing a rough patch despite doing the right things by expanding into messaging from chat. With Starboard on board, there are multiple paths to reinvigorating the company’s fortunes, not limited to enhancing better management and encouraging disciplined operational strategy. There is also a possibility of the company being put on sale to avert a proxy fight.

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