Perplexity AI may become a partial owner of TikTok
Perplexity has submitted a new merger proposal with TikTok, under which the US government will receive up to a 50% stake in the future company.
Here's What We Know
This information was first published by the Associated Press, and a source with knowledge of the proposal confirmed it to TechCrunch.
Perplexity AI previously proposed to create a new company by combining Perplexity, TikTok USA, and additional investors. According to the new proposal, the US government will receive its stake after an initial public offering of at least $300 million. At the same time, according to AP, the Chinese company ByteDance, the current owner of TikTok, may retain its stake.
According to sources, Perplexity changed its offer based on comments from the administration of President Donald Trump.
A week ago, TikTok was temporarily suspended due to a law requiring ByteDance to sell the app or face a ban in the US. The platform resumed its work after Trump said he would sign an executive order that would extend the sale. He also said that he wanted the US to take a "50% stake", although it was not clear whether he meant the US government or US investors.
Another report this week suggested that the White House is negotiating a deal under which Oracle (which already provides the infrastructure for TikTok's US traffic) could take control of the app. Trump said he had spoken to "a lot of people about TikTok" but "not Oracle".
Source: TechCrunch
