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Perplexity AI Revises Bid For TikTok, Others Compete For Half-Ownership

Jan 28, 2025 - mediapost.com
President Donald Trump has extended the timeline for the sell-off of TikTok in the United States, proposing a joint venture with China to maintain the platform's presence in the region. Various tech moguls and entities are competing to acquire a stake in TikTok. Perplexity AI has revised its takeover offer, proposing that the U.S. government could own up to 50% of a new company, "NewCo," upon a future IPO. The proposal suggests ByteDance would contribute TikTok U.S. without its recommendation algorithm, with existing investors receiving equity in the new entity. The merger would be funded by new third-party capital and a one-time dividend payment to ByteDance investors.

Other potential buyers include "The People's Bid for TikTok," involving Kevin O’Leary, Frank McCourt, and Tim Berners-Lee, as well as YouTube star MrBeast, who has expressed interest in buying the platform. Oracle is reportedly in discussions with the Trump Administration, while Microsoft has been named as a potential buyer but has not commented. Elon Musk has been mentioned by Trump and the Chinese government as a possible bidder, though he has not shown interest. The U.S. government could own up to half of the platform if it IPOs at a valuation of at least $300 billion, aligning with Trump's proposal to retain significant U.S. ownership.

Key takeaways:

  • President Trump is considering a joint venture to keep TikTok operational in the U.S., with the government potentially owning up to 50% of the new entity.
  • Perplexity AI has revised its offer for TikTok, proposing a merger that excludes TikTok's proprietary recommendation algorithm and involves new third-party capital.
  • Various entities, including "The People's Bid for TikTok" and MrBeast, have expressed interest in acquiring TikTok's U.S. operations.
  • Oracle and Microsoft have been mentioned as potential buyers, while Elon Musk has been named but has not shown interest in bidding.
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