U.S. search engine startup Perplexity AI has submitted a bid to merge with TikTok's U.S. operations, according to a source familiar with the matter. The bid was presented to TikTok’s Chinese parent company, ByteDance, on Saturday, the source told Reuters.
TikTok is facing a potential U.S. ban starting Sunday unless it severs ties with ByteDance. However, President-elect Donald Trump stated on Saturday that he might grant the platform a 90-day reprieve starting Monday. CNBC first reported the bid.
Under the proposal, Perplexity AI would merge with TikTok U.S. to form a new entity that would also involve New Capital Partners, the source said. This structure would allow ByteDance’s existing investors to retain their equity stakes while enhancing Perplexity's offerings with more video content.
Perplexity AI views the merger proposal as a compelling alternative to a full sale, increasing its chances of success, the source added, speaking anonymously due to the confidentiality of the discussions.
TikTok has yet to comment on the bid, and New Capital Partners could not be reached for immediate response.
Perplexity AI specializes in search tools powered by large language models, including OpenAI and Meta Platforms’ open-source model Llama. Its technology delivers quick, source-backed answers to user queries by summarizing and generating information.
TikTok, a platform that has captivated nearly half of Americans, powered small businesses, and shaped online culture, announced on Friday that it would go dark in the U.S. on Sunday unless the Biden administration guarantees companies like Apple and Google won’t face penalties for hosting the app.
Bd-pratidin English/ Jisan
