"Perplexity AI's Bold Move: A $300 Billion Deal to Merge with TikTok U.S. and Give the Government a 50% Stake!"

Perplexity AI, a U.S.-based artificial intelligence startup, has proposed a merger with TikTok's U.S. operations, owned by ByteDance, to address national security concerns and prevent a potential ban of the app in the United States. The revised proposal suggests creating a new entity that combines Perplexity AI with TikTok U.S., allowing the U.S. government to own up to a 50% stake following an initial public offering (IPO) valued at a minimum of $300 billion. Notably, the government's shares would be non-voting and would not grant board representation. This approach aims to mitigate concerns regarding Chinese ownership and data security, which have been central to the U.S. government's scrutiny of TikTok.

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The proposal is a revision of an earlier plan submitted on January 18, 2025, just before the enforcement of a law mandating TikTok's divestiture from ByteDance. The initial proposal involved merging Perplexity AI with TikTok's U.S. business and included investments from other partners. The updated proposal incorporates feedback from the Trump administration, emphasizing a structure that allows for significant U.S. government ownership without direct control, thereby addressing national security concerns while maintaining operational independence.

AP News

This development occurs amidst broader discussions about TikTok's future in the U.S., with various investors expressing interest in acquiring the platform. President Donald Trump has indicated optimism about reaching a deal soon, highlighting substantial interest and potential benefits for the U.S. The administration had previously postponed an attempted ban on TikTok, acknowledging the platform's influence among younger voters. The proposed merger by Perplexity AI offers a potential pathway to resolve ongoing security concerns while preserving TikTok's presence in the U.S. market.

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Sources

"New bid for TikTok from Perplexity AI could give US government 50% stake"

Perplexity AI has presented a revised proposal to ByteDance, suggesting a merger with TikTok's U.S. operations. The plan includes the creation of a new entity in which the U.S. government could own up to a 50% stake following an IPO of at least $300 billion. The government's shares would be non-voting and would not include board representation. This proposal aims to address U.S. national security concerns related to Chinese ownership of TikTok.

AP News

"Perplexity AI revises TikTok merger proposal that could give US government 50% stake, CNBC reports"

Perplexity AI has updated its merger proposal with ByteDance, proposing the formation of a new entity combining Perplexity AI and TikTok U.S. The revised plan allows for the U.S. government to acquire up to a 50% stake in this new company upon a future IPO. This move is intended to alleviate national security concerns by reducing Chinese ownership and increasing U.S. involvement in TikTok's U.S. operations.

Reuters

"Google Rival, Jeff Bezos-Backed Perplexity AI Seeks TikTok Merger"

Perplexity AI, an emerging competitor in the search engine market backed by investors like Jeff Bezos, has submitted a bid to merge with TikTok's U.S. business. The strategic move aims to strengthen Perplexity's position against competitors like Alphabet. The proposal suggests creating a new entity that merges Perplexity with TikTok U.S., allowing existing ByteDance investors to retain their equity stakes. This bid comes as TikTok faces a potential U.S. ban due to national security concerns over its Chinese ownership.

Investor's Business Daily

"Perplexity AI bids to merge with TikTok US, source says"

Perplexity AI has submitted a bid to ByteDance to merge with TikTok's U.S. operations. The proposal involves creating a new entity that combines Perplexity AI with TikTok U.S., potentially allowing most of ByteDance's existing investors to retain their equity stakes. This move is seen as a strategy to address U.S. national security concerns while preserving the platform's operations in the country.

Reuters

"Who Might Buy TikTok? From MrBeast to Elon Musk, Here Are the Top Contenders"

As TikTok faces a potential U.S. ban due to national security concerns, several potential buyers have emerged, including Elon Musk, MrBeast (Jimmy Donaldson), Kevin O'Leary, and Larry Ellison. Perplexity AI has also submitted a proposal to merge with TikTok's U.S. operations, suggesting the creation of a new entity that would allow ByteDance's existing investors to retain their equity stakes. The situation remains dynamic as various parties express interest in acquiring the platform.

Time