US-based AI Firm Perplexity Revises TikTok Bid: Report
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Synopsis
On January 27, US-based AI company Perplexity submitted a revised bid to merge with TikTok. Trump's executive order delays the TikTok ban, allowing for a potential partnership that gives the US government significant ownership while ByteDance may retain a stake.
Key Takeaways
- Perplexity's revised bid aims for a merger with TikTok.
- The US government could acquire up to 50% ownership.
- The deal involves an IPO of at least $300 million.
- ByteDance may retain part ownership of TikTok.
- The TikTok ban has been temporarily delayed by Trump.
New Delhi, Jan 27 (NationPress) The US-based artificial intelligence (AI) firm Perplexity has allegedly submitted a new proposal to merge with the Chinese short-form video platform TikTok.
Last week, US President Donald Trump signed an executive order that postpones the enforcement of a nationwide TikTok ban in the US for 75 days.
As reported by TechCrunch, sources indicate that the Perplexity deal would grant the US government up to 50 percent ownership of the newly formed entity.
Previously, Perplexity suggested forming a new company by merging with TikTok US and other equity investors.
Under the revised bid, the government is expected to obtain its share following an initial public offering of at least $300 million, while TikTok's existing Chinese owner ByteDance could maintain a stake.
Last week, TikTok faced a temporary shutdown due to legislation requiring ByteDance to sell the app or face a ban in the United States. The situation was alleviated when Trump announced he would sign an executive order to extend the ban's deadline.
The executive order instructed his Attorney General to refrain from imposing fines on app stores and service providers that assist TikTok in continuing operations.
TikTok CEO Shou Chew was present at Trump's inauguration, seated next to Tulsi Gabbard, who is nominated for the position of Director of National Intelligence. The company also hosted a party in Washington to celebrate the inauguration.
The legislation mandated that starting January 19, TikTok would face a ban in the US unless it was acquired by an American buyer or one from an allied nation. The law grants the President considerable authority in enforcing the ban.
Trump has emphasized the necessity for a “level playing field” with China regarding trade relations. He also had a phone conversation with Chinese President Xi Jinping, discussing various matters including trade, fentanyl, and TikTok.
