SCHEDULE: Davidson Kempner Discloses 7% Stake in LivePerson

Davidson Kempner Capital Management and affiliates have reported a 7.00% beneficial ownership stake in LivePerson Inc. common stock.

Summary

• Davidson Kempner Capital Management LP, along with M.H. Davidson & Co., Davidson Kempner Arbitrage, Equities & Relative Value LP, and Anthony A. Yoseloff, collectively reported beneficial ownership of 10,491,933 shares of LivePerson Inc. common stock.
• This aggregate ownership represents 7.00% of LivePerson's outstanding common stock.
• The percentage calculation is based on 149,958,904 shares outstanding, which includes 96,624,957 shares as of August 1, 2025, and an additional 53,333,947 shares issued on September 12, 2025, via an exchange agreement.
• The filing was made under Rule 13d-1(c), indicating a passive investment intent by the reporting persons.

Sentiment

Score: 7

Explanation: The disclosure of a significant passive stake by a reputable investment firm like Davidson Kempner is generally viewed positively, indicating institutional interest and potential long-term value. The large share issuance, while a capital event, could dilute existing shareholders if not managed effectively, but the filing itself doesn't provide enough context to assess its full impact.

Positives

• A prominent investment firm, Davidson Kempner Capital Management, has taken a significant 7.00% stake in LivePerson Inc., potentially signaling confidence in the company's future.
• The investment is classified as passive, suggesting a long-term strategic interest rather than an immediate activist intent.

Future Outlook

The filing does not provide forward-looking statements or guidance from the company or the reporting persons beyond the passive investment intent.

Management Comments

• Anthony A. Yoseloff certified that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer, nor in connection with any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 240.14a-11.

Industry Context

This filing indicates a significant institutional investment in LivePerson, a company operating in the customer engagement and AI-powered conversational solutions space. Such investments can be seen as a vote of confidence in the company's market position or future growth prospects within the evolving AI and customer service technology sector.

Comparison to Industry Standards

• This filing is a disclosure of beneficial ownership, not a report on financial or operational performance. Therefore, direct comparisons to industry standards for financial results or operational metrics are not applicable. The 7.00% stake represents a substantial passive investment by a hedge fund.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor taking a 7.00% stake could be seen as a positive signal, potentially increasing investor confidence. However, the issuance of 53,333,947 new shares on September 12, 2025, represents significant dilution (an increase of approximately 55% in outstanding shares) which could negatively impact existing shareholders' per-share value.

Key Dates

Recommendation

While the entry of a prominent institutional investor like Davidson Kempner with a 7.00% passive stake is generally a positive indicator of potential long-term value, the significant dilution caused by the issuance of 53,333,947 new shares (a 55% increase in outstanding shares) on September 12, 2025, introduces uncertainty regarding its immediate impact on per-share metrics and valuation. Investors should hold to assess the implications of this dilution and the company's strategic rationale behind the exchange agreement.

Keywords

LivePerson Inc., LPSN, Davidson Kempner, Institutional Ownership, Hedge Fund, SEC Filing, Schedule 13G, Common Stock, Investment