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Perplexity submits a new bid for TikTok | TechCrunch

Jan 26, 2025 - techcrunch.com
Perplexity AI has submitted a revised proposal to merge with TikTok, which would allow the U.S. government to own up to 50 percent of the new entity. This proposal follows feedback from President Donald Trump's administration and aims to resolve issues surrounding TikTok's ownership in the U.S. The plan involves creating a new company by merging Perplexity, TikTok US, and additional equity investors, with the government receiving its stake after an IPO of at least $300 million. ByteDance, TikTok's current Chinese owner, could retain ownership under this arrangement.

The proposal comes amid tensions over a law requiring ByteDance to sell TikTok or face a ban in the U.S. TikTok experienced a brief outage last weekend due to this law, but resumed operations after Trump announced an extension of the sale deadline. Trump has expressed interest in the U.S. obtaining "50% ownership," though it remains unclear if this refers to the government or U.S. investors. Meanwhile, reports suggest the White House is negotiating a separate deal with Oracle, which already manages TikTok's U.S. infrastructure, although Trump has not confirmed discussions with Oracle.

Key takeaways:

  • Perplexity AI has submitted a revised proposal to merge with TikTok, potentially giving the U.S. government up to 50% ownership of the new entity.
  • The proposal includes an IPO of at least $300 million, with ByteDance retaining some ownership.
  • The revision was made based on feedback from President Donald Trump's administration.
  • There are ongoing negotiations, with Oracle mentioned as a potential partner, although Trump has not confirmed discussions with them.
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