Perplexity AI, a U.S.-based startup, has proposed merging with TikTok’s U.S. unit to create a new entity called “NewCo.” The deal would give the U.S. government 50% ownership of NewCo after an IPO valued at $300 billion or more. Perplexity plans to offer itself as an acquisition option for the holding company once the deal is finalized. ByteDance, TikTok’s parent, and the U.S. government have not yet responded to a Reuters query. The proposal marks a shift from earlier reports suggesting a direct merger without ByteDance’s involvement.
Source: https://www.reuters.com/markets/deals/perplexity-ai-revises-tiktok-merger-proposal-that-could-give-us-government-50-2025-01-26