Perplexity AI submitted a revised merger proposal to TikTok’s Chinese language mum or dad ByteDance as the favored video-sharing app stares down a nationwide ban, in response to a number of stories.
Below the brand new proposal, the US authorities would come clean with half of the corporate after a future preliminary public providing, a supply conversant in the matter instructed CNBC.
A Perplexity doc shared with ByteDance and new buyers proposed the creation of a brand new US holding firm referred to as “NewCo,” the particular person mentioned.
As a part of the deal, ByteDance would promote TikTok US to those new buyers, in response to the report.
The mum or dad firm would hold TikTok’s core advice algorithm for itself below the deal.
After NewCo completes a public providing at a valuation of no less than $300 billion, the US authorities would come clean with half of the brand new construction.
Perplexity AI – which began 2024 with a roughly $500 million valuation and ended the 12 months at about $9 billion – would additionally supply itself to the holding firm, if its personal buyers obtain a few of the NewCo fairness.
The Trump administration is reportedly engaged on a plan to save lots of TikTok by tapping software program large Oracle to run the app’s operations.
ByteDance and Perplexity AI didn’t instantly reply to requests for remark.
Perplexity AI’s proposed merger could possibly be extra prone to succeed than different bids, since it isn’t a sale, a supply instructed Reuters.
The bidding conflict for TikTok began after the Biden administration handed a divest-or-sell regulation that went into impact Jan. 19, the day earlier than Trump took workplace.
TikTok briefly shut down earlier than Trump signed an government order final week that offers ByteDance a further 75 days to make a deal.
TikTok’s house owners had beforehand dominated not promoting the app, which US officers declare poses a nationwide safety menace as a result of it might put US customers’ private knowledge in danger.
On Saturday, Trump mentioned he would doubtless have a choice on the app’s future within the US inside the subsequent 30 days.
Individually, billionaire Frank McCourt, “Shark Tank” star Kevin O’Leary and YouTube influencer Mr. Beast have made overtures about shopping for TikTok.
With Submit wires
