Perplexity AI has submitted a revised proposal to merge with TikTok US under ByteDance’s ownership, with the U.S. government set to receive up to 50% stake in the joint entity. The deal would require an initial public offering of at least $300 million before ByteDance retains control over TikTok.
The company reportedly revised its bid after feedback from President Trump’s administration amid concerns about TikTok’s security and potential sale to Oracle, which currently provides infrastructure for U.S.-based traffic. TikTok briefly dropped in value last weekend due to a law compelling ByteDance to consider a sale or ban in the U.S., but recovered following an executive order extending the deadline.
A recent report suggested Oracle might take over TikTok’s infrastructure if a deal is finalized, though Trump has not confirmed this. The U.S. government’s ownership stake could bring significant investment and influence to the merged company, raising questions about its future direction in global markets.
This merger proposal underscores the growing convergence of major tech companies as they seek to secure a foothold in the rapidly evolving global market.
Source: https://techcrunch.com/2025/01/26/perplexity-submits-a-new-bid-for-tiktok