Perplexity AI has submitted a bid to merge with TikTok’s US operations, ByteDance’s parent company, in a deal that could be worth over $50 billion. The new entity would retain most of its existing investors and bring more video content to Perplexity.
The proposal was made on Saturday, and President-elect Donald Trump has expressed support for the deal, stating he will give TikTok 90 days to finalize the merger. ByteDance has previously stated it will not sell TikTok US, which is why Perplexity AI believes its bid has a chance with a merger rather than sale.
Perplexity AI’s valuation jumped from $500 million in January to over $9 billion by the end of 2024, as investors took notice of the generative AI boom. The company competes with OpenAI and Google in the AI search market.
However, any potential transaction will take months to complete. Meanwhile, TikTok has announced it will go dark on Sunday unless the Biden administration assures that Apple and other service providers won’t punish them for hosting the app.
ByteDance has publicly stated its unwillingness to sell TikTok US, which is why Perplexity AI believes a merger is more feasible. A fair price for the deal is expected to be “well north of $50 billion,” according to a source familiar with the situation.
President Trump’s support for the deal gives it a boost, but it remains to be seen how the transaction will proceed. The merged entity would combine Perplexity AI, TikTok US, and new capital partners, allowing most existing investors to retain their stakes and bringing more video content to Perplexity.
Source: https://www.cnbc.com/2025/01/18/perplexity-ai-makes-a-bid-to-merge-with-tiktok-us.html