Jan. 27, 2025
Perplexity AI Proposes TikTok Merger With U.S. Government Ownership Stake
TMTPOST -- U.S.-based search engine startup Perplexity AI has updated its merger proposal to TikTok's Chinese parent company, ByteDance, suggesting the creation of a new entity that combines Perplexity and TikTok's U.S. operations, according to a source familiar with the matter. The revised plan includes a provision for the U.S. government to own up to 50% of the newly formed company following an initial public offering (IPO). Perplexity’s proposal outlines the establishment of a U.S. holding company, dubbed "NewCo," which would serve as the merged entity, the source revealed. As part of the plan, ByteDance would sell TikTok U.S. to the new investors, allowing TikTok's existing shareholders to gain equity in "NewCo." However, TikTok’s core recommendation algorithm, a cornerstone of its global success, would remain under ByteDance’s control. The proposal reflects ongoing efforts to address U.S. concerns over TikTok’s ownership and data security while seeking to secure the app’s presence in the American market.
More News

  • Subscribe To Our News