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Perplexity AI Updates its Offer to TikTok US

Jan 27, 2025 - socialmediatoday.com
The U.S. TikTok acquisition saga continues, with Perplexity AI revising its offer to acquire TikTok's U.S. operations. The new proposal suggests creating a joint entity with TikTok U.S., allowing the U.S. government to own up to 50% upon a future IPO. This aligns with President Trump's desire for the government to benefit from the deal and ensure compliance with the Protecting Americans from Foreign Adversary Controlled Applications Act. Trump's plan echoes the Chinese government's influence over Douyin, TikTok's Chinese counterpart, and reflects his interest in controlling media narratives.

Several parties are interested in acquiring TikTok U.S., including Oracle, Microsoft, Elon Musk, YouTuber MrBeast with a consortium of investors, and another consortium led by Kevin O’Leary and Frank McCourt. The outcome of these negotiations remains uncertain, especially regarding the inclusion of TikTok's algorithm, which China is reluctant to sell. The Trump administration and TikTok have until April to finalize a deal that meets legislative requirements.

Key takeaways:

  • Perplexity AI revised its offer to acquire TikTok U.S., proposing a new entity where the U.S. government could own up to 50% upon a future IPO.
  • President Trump expressed interest in a joint venture with China, allowing the U.S. to own 50% of TikTok, aligning with the Protecting Americans from Foreign Adversary Controlled Applications Act.
  • Several parties, including Oracle, Microsoft, Elon Musk, MrBeast, and a consortium led by Kevin O’Leary and Frank McCourt, are potential candidates for acquiring TikTok U.S.
  • The Chinese government has stated it will not sell TikTok's algorithm, and the deadline for a deal with the Trump administration is set for April.
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