What Happened to Talkspace?

Talkspace merged with Hudson Executive Investment Corp in June 2021, riding pandemic-era mental health demand. Michael Phelps was a prominent spokesperson. The company offered text and video therapy sessions via app. But customer acquisition costs were brutal, therapists were poorly compensated (leading to high turnover), and insurance reimbursement was complex. The stock fell from $12 to under $1 before rallying slightly on acquisition rumors. Acquired by a private equity firm in 2024.