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On Sun, 19 Jan, 12:00 AM UTC
9 Sources
[1]
Perplexity AI proposes TikTok merger to save the app in the US -- here's what we know
In a bold move, Perplexity AI, a U.S.-based search engine startup, has submitted a proposal to merge with TikTok's U.S. operations. This initiative emerges as TikTok resumes after a short ban in the United States due to national security concerns associated with its Chinese parent company, ByteDance. Perplexity AI's bid entails merging with TikTok U.S. to form a new entity, incorporating New Capital Partners. This structure would allow ByteDance's existing investors to retain their equity stakes while addressing U.S. regulatory apprehensions. The proposal is strategically timed, as President-elect Donald Trump takes office today and has indicated a probable 90-day extension to facilitate a resolution. The proposed merger could significantly disrupt the current digital ecosystem, challenging the dominance of industry giants like Google and Meta. By integrating Perplexity AI's advanced search capabilities with TikTok's extensive user base, the new platform could offer a unique blend of AI-powered search and dynamic short-form video content. This fusion has the potential to redefine content discovery and digital advertising strategies. The backdrop to this proposal includes heightened scrutiny of TikTok's data practices and its ownership structure. The U.S. Supreme Court recently upheld legislation mandating TikTok's divestiture from ByteDance by January 2025, emphasizing national security concerns. This decision has prompted TikTok to explore viable options to maintain its U.S. presence, with the Perplexity AI merger proposal being a notable development. If successful, the merger could lead to several transformative outcomes including enhanced user experience. Integrating Perplexity AI's search technology could make it easier for TikTok users to find specific videos, trends, and creators, thereby improving content discoverability. The combined platform could emerge as a formidable competitor to existing search and social media platforms, leveraging AI-driven insights to attract users and advertisers alike. Creators might benefit from AI-driven tools offering intelligent content suggestions and advanced analytics, enabling more effective audience engagement. The tech community is closely monitoring these developments. While the merger proposal is ambitious, it faces significant challenges, including regulatory approvals and the complexities inherent in merging two substantial platforms. Additionally, other potential buyers, such as Elon Musk, have expressed interest in acquiring TikTok's U.S. operations, adding another layer of complexity to the situation. The proposed merger between Perplexity AI and TikTok U.S. represents a pivotal moment in the tech industry, with the potential to alter the competitive dynamics of digital platforms.
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Perplexity AI Said to Be Considering Merger with TikTok US
Perplexity AI believes its bid may succeed since the proposal is a merger US search engine startup Perplexity AI submitted a bid on Saturday to TikTok's Chinese parent ByteDance for Perplexity to merge with TikTok US a source familiar with the company's plans told Reuters. TikTok faces a US ban starting on Sunday if it does not cut ties with ByteDance, although President-elect Donald Trump said on Saturday he would likely give the short-video social-media platform a 90-day reprieve on Monday. CNBC first reported the offer. Perplexity would merge with TikTok US and create a new entity by combining the merged company with New Capital Partners, the person said. The new structure proposed by Perplexity would allow for most of ByteDance's existing investors to retain their equity stakes and would bring more video to Perplexity, the source said, requesting anonymity because the matter is confidential. TikTok did not immediately respond to requests for comment. New Capital Partners could not be immediately reached. Perplexity AI believes its bid may succeed since the proposal is a merger rather than a sale, the person said. Perplexity AI's search tools enable users to get fast answers to questions, with sources and citations. It is powered by large language models that can sum up and generate information, from OpenAI to Meta Platforms' open-source model Llama. TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, said on Friday it will go dark in the US on Sunday unless President Joe Biden's administration provides assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect. © Thomson Reuters 2025
[3]
Perplexity AI bids to merge with TikTok US, CNBC reports
(Reuters) - Perplexity AI asked TikTok's Chinese parent company, ByteDance, on Saturday to allow the U.S. search engine startup to merge with TikTok U.S. and create a new entity combining them and New Capital Partners, CNBC reported. TikTok faces a U.S. ban starting on Sunday if it does not cut ties with ByteDance, although President-elect Donald Trump said on Saturday he would likely give the short-video social-media platform a 90-day reprieve on Monday. The new structure proposed by Perplexity would allow for most of ByteDance's existing investors to retain their equity stakes and would bring more video to Perplexity, the report said, citing an unnamed source familiar with the situation. Perplexity AI and TikTok did not immediately respond to requests for comment. New Capital Partners could not be immediately reached. Perplexity AI believes its bid may succeed since the proposal is a merger rather than a sale, the report added. Perplexity AI's search tools enable users to get fast answers to questions, with sources and citations. It is powered by large language models that can sum up and generate information, from OpenAI to Meta Platforms' open-source model Llama. TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, said on Friday it will go dark in the U.S. on Sunday unless President Joe Biden's administration provides assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect. (Reporting by Mrinmay Dey in Bengaluru; Editing by Cynthia Osterman and Rod Nickel)
[4]
Perplexity AI submits bid to merge with TikTok US
The search engine platform Perplexity AI submitted a bid to merge with TikTok on Saturday, a source familiar told The Hill. The move follows a Friday Supreme Court ruling that upheld the decision to enforce a ban on TikTok due to national security risks. Under the proposed deal, Perplexity, TikTok U.S. and new capital partners would combine, according to CNBC who first reported the news. It would also allow for TikTok's stakeholders to remain invested in the platform, as reported by the outlet which said sources believe bids for the company should start "well north of $50 billion." The merger would offer more available video content for Perplexity which would help improve responses generated from artificial intelligence (AI), transforming the possibility for the app's future use. TikTok has already promised users it would "create unique, transformative, and year-defining content" in their What's Next Report for 2025, projecting spikes in business deals on the app. Potential owners include billionaire businessmen Frank McCourt, Steven Mnuchin and Kevin O'Leary, who have recently said they would buy the platform, although Tik Tok CEO Shou Chew said the company would not sell to a U.S. owner. The TikTok ban is set to go into place Sunday, although the Biden administration said it would not enforce the ban and will instead punt the enforcement to the Trump administration. Trump suggested Saturday that he's likely to give TikTok a 90-day extension once he takes office.
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Perplexity AI submits bid to merge with TikTok | TechCrunch
With a TikTok ban looming in the United States, Perplexity AI is the latest bidder hoping to give the video app a new corporate home. CNBC first reported on Perplexity's interest. A source with knowledge of the offer confirmed to TechCrunch that Perplexity (whose CEO Aravind Srinivas is pictured above) has submitted a bid to merge with TikTok US. The source also confirmed other details about the bid -- that it would create a new entity combining Perplexity, TikTok, and new equity partners; that most investors in TikTok's parent company ByteDance would be able to retain their equity; and that by merging, Perplexity hopes to bring more video to its AI search engine. A law requiring ByteDance to either sell TikTok or see it banned in the US is set to take effect on Sunday, January 19. That will be President Joe Biden's last day in office, and officials from his administration have said that it will leave the actual implementation of the ban "to the next Administration." Meanwhile, President-elect Donald Trump, who will be inaugurated on Monday, said he would "most likely" give TikTok a 90-day extension, and TikTok's CEO posted a video thanking Trump for his efforts. However, TikTok said that without more explicit assurances of non-enforcement from the Biden administration, it will be "forced to go dark" on Sunday. Despite a number of buyers expressing interest in TikTok, ByteDance has said repeatedly that it does not intend to sell. (The company described a report that the Chinese government is open to an acquisition by Elon Musk as "pure fiction.") CNBC reports that Perplexity is hoping it can overcome those reservations by proposing a merger rather than a sale. TechCrunch has reached out to TikTok and Perplexity AI for comment.
[6]
Perplexity AI makes a bid to merge with TikTok U.S.
Though any potential transaction would likely take months to complete, President-elect Donald Trump said he "most likely" would give TikTok 90 more days to work out a deal. Perplexity AI officially made a play for TikTok on Saturday, submitting a bid to its parent company, ByteDance, to allow Perplexity to merge with TikTok U.S. and create a new entity combining Perplexity, TikTok U.S. and New Capital Partners, CNBC has learned. The new structure would allow for most of ByteDance's existing investors to retain their equity stakes and would bring more video to Perplexity, according to a source familiar with the situation, who asked to remain anonymous due to the confidential nature of the potential deal. Perplexity AI, the artificial intelligence search engine startup competing with OpenAI and Google, started 2024 with a roughly $500 million valuation and ended the year with a valuation of about $9 billion, after attracting increasing investor interest amid the generative AI boom -- as well as controversy over plagiarism accusations. AI-assisted search has been viewed by investors as one of Google's key risks, as it potentially changes the way consumers access information online. Last year, OpenAI, which started the generative AI craze in late 2022 with ChatGPT, introduced a search engine called SearchGPT. Google later launched "AI Overviews" in search, allowing users to see a quick summary of answers at the top of results. Though any potential transaction between Perplexity AI and ByteDance would likely take months to complete -- and TikTok has said the app will "go dark" in the U.S. on Sunday unless the Biden administration assures it won't punish Apple, Google and other service providers for hosting it -- President-elect Donald Trump told NBC News on Saturday that he "most likely" would give TikTok 90 more days to work out a deal after he is sworn into office on Monday. In a video posted to TikTok on Friday, CEO Shou Zi Chew said, "I want to thank President Trump for his commitment to work with us to find a solution that keeps TikTok available in the United States." ByteDance has publicly implied it will not sell TikTok U.S., which is part of why Perplexity AI believes it has a shot with its bid -- since the proposal is a merger rather than a sale, the source told CNBC. The source believes a fair price is "well north of $50 billion" but that the final number attached to the proposal will be decided, in part, by which of ByteDance's existing shareholders want to remain part of the new entity and which want to cash out.
[7]
Perplexity AI bids to merge with TikTok US amid looming ban, source says
U.S. search engine startup Perplexity AI submitted a bid on Saturday to TikTok's Chinese parent ByteDance for Perplexity to merge with TikTok U.S., a source familiar with the company's plans told Reuters. TikTok faces a U.S. ban starting on Sunday if it does not cut ties with ByteDance, although President-elect Donald Trump said on Saturday he would likely give the short-video social-media platform a 90-day reprieve on Monday. CNBC first reported the offer. Perplexity would merge with TikTok U.S. and create a new entity by combining the merged company with other partners, the person said. The new structure proposed by Perplexity would allow for most of ByteDance's existing investors to retain their equity stakes and would bring more video to Perplexity, the source said, requesting anonymity because the matter is confidential. TikTok did not immediately respond to requests for comment. Perplexity AI believes its bid may succeed since the proposal is a merger rather than a sale, the person said. Perplexity AI's search tools enable users to get fast answers to questions, with sources and citations. It is powered by large language models that can sum up and generate information, from OpenAI to Meta Platforms' META.O open-source model Llama. TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, said on Friday it will go dark in the U.S. on Sunday unless President Joe Biden's administration provides assurances to companies such as Apple AAPL.O and Google GOOGL.O that they will not face enforcement actions when a ban takes effect. (Reporting by Mrinmay Dey in Bengaluru; Editing by Cynthia Osterman and Rod Nickel)
[8]
Perplexity AI and TikTok Merger: Could Blockchain Play a Role?
The company called Perplexity AI has introduced a plan to merge with TikTok US to form a new company known as the New Capital Partners. As per media statements, the deal proposed aim to let the current investors of ByteDance continue to be the shareholders of the company; at the same time, it would enable the better integration of video content into Perplexity's AI search. TikTok is facing possible removal from the United States for security reasons related to national security. The US Supreme Court has recently approved laws that would force ByteDance to sell TikTok US or get a blockage. This decision has been due to concerns over social media's use of data and relations with Beijing. Perplexity AI's merger proposal is an offer different from a straight sale. While other bidders, such as Frank McCourt and Kevin O'Leary, are interested in buying the company and then moving or selling its operations in the United States, Perplexity is interested in building a common enterprise instead of divesting TikTok's US operations.
[9]
Perplexity AI has reportedly submitted an 11th-hour bid to save TikTok in the US
The startup proposed merging with TikTok's US operations, CNBC reports, but there's no telling whether ByteDance will go for it. Just one day before TikTok is expected to shut down in the US, startup Perplexity AI has submitted a bid to TikTok's parent company ByteDance proposing a merger that would allow it to continue operating, CNBC reports. Citing an anonymous source, CNBC reports that the proposed merger would "create a new entity combining Perplexity, TikTok US and New Capital Partners." It comes after the Supreme Court on Friday ruled unanimously to uphold a law that requires ByteDance to sell TikTok or it will be banned in the US. The company has so far resisted the idea of a sale. According to CNBC's source, Perplexity is hoping a merger rather than a sale will be more appealing to ByteDance. "The new structure would allow for most of ByteDance's existing investors to retain their equity stakes and would bring more video to Perplexity," CNBC reports. If ByteDance were to accept the proposal, there's a chance the company would be given a 90-day extension by Trump to work out a deal, which he told NBC News' Kristen Welker that he would "most likely" do when he takes office on Monday. But there is as yet no indication that ByteDance will go this route. Despite rampant speculation about potential buyers, TikTok said it will "be forced to go dark on January 19" when the law takes effect unless "the Biden Administration immediately provides a definitive statement to satisfy the most critical service providers assuring non-enforcement." The outgoing administration, however, reportedly says it's leaving all that for the Trump team to deal with. Per MSNBC, White House Press Secretary Karine Jean-Pierre called TikTok's claim about shutting down "a stunt," and said "we see no reason for TikTok or other companies to take actions in the next few days before the Trump Administration takes office on Monday." "We have laid out our position clearly and straightforwardly: actions to implement this law will fall to the next administration," Jean-Pierre said, according to MSNBC. "So TikTok and other companies should take up any concerns with them."
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Perplexity AI, a US-based search engine startup, has submitted a bid to merge with TikTok's US operations, potentially creating a new entity that combines AI-powered search with short-form video content. This move comes as TikTok faces a potential ban in the US due to national security concerns.
In a surprising move, US-based search engine startup Perplexity AI has submitted a bid to merge with TikTok's US operations. This proposal comes at a critical time as TikTok faces a potential ban in the United States due to national security concerns related to its Chinese parent company, ByteDance 12.
The proposed merger would create a new entity combining Perplexity AI, TikTok US, and New Capital Partners. This structure would allow most of ByteDance's existing investors to retain their equity stakes while addressing US regulatory concerns 3. The merger, rather than an outright sale, is seen as a potential solution to ByteDance's reluctance to sell TikTok 5.
The proposal is strategically timed, coinciding with President-elect Donald Trump's inauguration. Trump has indicated a likely 90-day extension for TikTok to resolve its situation 14. However, the current ban is set to take effect on Sunday, January 19, unless the Biden administration provides assurances of non-enforcement to companies like Apple and Google 35.
If successful, the merger could significantly disrupt the current digital ecosystem:
Enhanced User Experience: Integrating Perplexity AI's search technology could improve content discoverability on TikTok 1.
Competitive Edge: The combined platform could emerge as a formidable competitor to existing search and social media giants like Google and Meta 1.
AI-Powered Content: Perplexity AI aims to bring more video content to its platform, potentially improving its AI-generated responses 45.
The proposed merger faces several hurdles:
Regulatory Approvals: Given the ongoing scrutiny of TikTok, obtaining necessary regulatory clearances could be challenging 1.
Technical Integration: Merging two substantial platforms presents complex technical challenges 1.
Other Interested Parties: Potential buyers like Elon Musk and others have expressed interest in acquiring TikTok's US operations, adding competition to Perplexity AI's bid 14.
While specific financial details are not disclosed, sources suggest that bids for TikTok should start "well north of $50 billion" 4. This highlights the significant value placed on TikTok's US operations and the potential impact of this merger on the tech industry.
TikTok has stated that it will "go dark" in the US on Sunday unless it receives assurances from the Biden administration 35. The company's CEO, Shou Chew, has previously stated that TikTok would not sell to a US owner, making the merger proposal an interesting alternative 4.
As the situation unfolds, the tech community and policymakers are closely watching these developments, recognizing the potential for this merger to reshape the landscape of digital platforms and AI-driven content discovery.
Reference
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Perplexity AI has submitted a revised proposal to merge with TikTok's U.S. operations, potentially giving the U.S. government a 50% stake in the new entity. This move comes amid ongoing concerns about TikTok's Chinese ownership and national security implications.
17 Sources
17 Sources
Perplexity AI, a San Francisco-based startup, has reiterated its interest in acquiring TikTok's US operations, proposing significant changes to the platform's algorithm and features while addressing concerns about foreign control and monopolization.
10 Sources
10 Sources
Amidst ongoing legal battles and national security concerns, reports suggest that Elon Musk could potentially acquire TikTok's US operations. This development raises questions about data privacy, content moderation, and the future of social media platforms.
4 Sources
4 Sources
TikTok faces a critical moment in US courts as judges express skepticism over the constitutionality of a potential ban. The case highlights the tension between free speech and national security concerns.
3 Sources
3 Sources
ByteDance, TikTok's parent company, plans to invest around $20 billion in AI infrastructure in 2025, focusing on enhancing its AI capabilities both domestically and internationally while navigating geopolitical challenges.
10 Sources
10 Sources
