Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Perplexity AI wants to buy TikTok — and give the U.S. government a big stake

Jan 27, 2025 - qz.com
Perplexity AI has revised its proposal to merge with TikTok, offering a structure that would allow the U.S. government to own up to 50% of a new entity, "NewCo," following an IPO valued at a minimum of $300 billion. This proposal, which excludes TikTok's algorithm, involves ByteDance contributing TikTok's U.S. division to NewCo in exchange for equity, while Perplexity AI's investors would receive NewCo equity. Despite the government's potential ownership stake, it would not have a seat on NewCo's board or voting power. The proposal aligns with feedback from former President Donald Trump's administration, who expressed interest in a joint venture to maintain TikTok's presence in the U.S.

Perplexity AI, a $9 billion AI search engine startup, is among several bidders for TikTok's U.S. operations. Other notable bids include The People’s Bid for TikTok, led by billionaire Frank McCourt and supported by Kevin O’Leary, and a consortium led by Employer.com Founder Jesse Tinsley, which includes YouTuber MrBeast. The discussions follow a period of uncertainty for TikTok, which faced a potential ban that was temporarily lifted by executive orders from both then-President Joe Biden and Trump.

Key takeaways:

  • Perplexity AI has revised its offer to merge with TikTok, proposing a structure where the U.S. government would have 50% control in a future IPO.
  • A new holding company, "NewCo," would be created, with TikTok's U.S. division contributed by ByteDance, excluding its algorithm.
  • The U.S. government would own up to half of NewCo following an IPO valued at at least $300 billion, but without board seats or voting power.
  • Perplexity AI is one of several bidders for TikTok's U.S. operations, competing against groups like The People's Bid for TikTok and a consortium led by Jesse Tinsley.
View Full Article

Comments (0)

Be the first to comment!