US-based artificial intelligence (AI) company Perplexity has reportedly submitted a revised proposal to merge with TikTok, the popular Chinese short-video platform. The updated bid comes amidst ongoing discussions about TikTok’s future in the United States.
According to reports from TechCrunch, the revised bid by Perplexity proposes giving the US government up to 50% ownership in the new company. This ownership stake would be granted after an initial public offering (IPO) worth at least $300 million.
Perplexity’s earlier plan involved creating a new company by merging TikTok’s US operations with Perplexity and other equity investors. The updated proposal allows TikTok’s current Chinese owner, ByteDance, to retain some ownership in the new entity, offering a potential resolution to ongoing tensions.
TikTok Ban Deadline
TikTok faced a potential nationwide ban in the US due to a law requiring ByteDance to sell the app to an American buyer or an ally. The ban, originally set to take effect on January 19, has been temporarily delayed after former President Donald Trump signed an executive order extending the deadline by 75 days.
The executive order also directed the Attorney General not to impose fines on app stores or service providers that continue supporting TikTok during this period. This move temporarily eased pressure on ByteDance while negotiations continue.
Discussions Between Leaders
The future of TikTok has become a key topic in US-China relations. Former President Trump emphasized the importance of creating a “level-playing field” in trade relations with China. During a recent phone call with Chinese President Xi Jinping, Trump discussed several issues, including TikTok, trade policies, and fentanyl.
TikTok experienced a brief shutdown last week after facing pressure to sell its US operations. However, the app resumed operations following Trump’s announcement of an extended deadline. TikTok CEO Shou Chew also attended Trump’s inauguration and was seated next to Tulsi Gabbard, who was nominated as the director of national intelligence.
Way for TikTok in the US
The revised bid by Perplexity offers a potential solution to the ongoing conflict over TikTok’s presence in the US. By involving the US government as a stakeholder, the proposal aims to address national security concerns while allowing ByteDance to retain some control over the platform.
As discussions continue, the focus remains on finding a balance that ensures TikTok’s operations in the US comply with legal requirements while maintaining its global appeal.
