Perplexity AI Makes Bold Move to Acquire TikTok, Offers Stake to U.S. Government
In a surprising turn of events, Perplexity AI has made a renewed bid to acquire TikTok, with a proposal that could potentially grant the U.S. government up to 50 percent ownership of the resulting entity. The news was first brought to light by the Associated Press, and a reliable source has confirmed the accuracy of this development to TechCrunch.
Initially, Perplexity had put forward a plan to merge with TikTok US and other equity investors to form a new company. However, the revised bid now includes a provision for the government to acquire its share following an initial public offering worth at least $300 million. Interestingly, ByteDance, the current Chinese owner of TikTok, may also continue to hold a stake in the company, as per the AP report.
This new proposal from Perplexity comes in the wake of feedback received from the administration of President Donald Trump. The tech giant appears to be adapting its strategy to align with the expectations set forth by the government amidst ongoing discussions regarding the future of TikTok in the U.S.
Over the weekend, TikTok experienced a brief outage due to regulatory pressures compelling ByteDance to divest the app or face a potential ban in the country. However, the platform quickly resumed operations after Trump announced his intention to sign an executive order extending the sale deadline. Additionally, the President expressed his desire for the U.S. to have “50% ownership” of TikTok, although the specifics of this ownership remain unclear.
Recent reports have also hinted at negotiations within the White House for Oracle to assume control of TikTok, given its existing role in managing the app’s U.S. traffic infrastructure. When pressed for details, Trump acknowledged discussing TikTok with various stakeholders but did not confirm any direct interactions with Oracle.
As the saga surrounding TikTok continues to unfold, the tech industry and the public at large remain captivated by the twists and turns of this high-stakes acquisition battle. Stay tuned for more updates as the situation evolves.
