TikTok Ban Looms as Perplexity AI Makes a Bid to Save the App
Background
With a TikTok ban looming in the United States, Perplexity AI is the latest bidder hoping to give the video app a new corporate home. CNBC first reported on Perplexity’s interest, and a source with knowledge of the offer has confirmed to TechCrunch that the company has submitted a bid to merge with TikTok US.
Mergers and Acquisitions
The source also confirmed that the bid would create a new entity combining Perplexity, TikTok US, and new equity partners. Most investors in TikTok’s parent company, ByteDance, would be able to retain their equity. The merger aims to bring more video to Perplexity’s AI search engine.
Government Involvement
A law requiring ByteDance to either sell TikTok or face a ban in the US is set to take effect on Sunday, January 19. President Joe Biden’s administration has stated that it will leave the actual implementation of the ban to the next administration.
President-Elect’s Statement
President-elect Donald Trump has said he would "most likely" give TikTok a 90-day extension. TikTok’s CEO has posted a video thanking Trump for his efforts. However, TikTok has stated that without more explicit assurances of non-enforcement from the Biden administration, it will be "forced to go dark" on Sunday.
Buyer Interest
Despite a number of buyers expressing interest in TikTok, ByteDance has repeatedly stated that it does not intend to sell. CNBC reports that Perplexity is hoping to overcome these reservations by proposing a merger rather than a sale.
Conclusion
As the deadline for the ban approaches, it remains to be seen whether Perplexity’s bid will be successful. With the uncertainty surrounding TikTok’s future in the United States, only time will tell if the app will be able to find a new home or face the possibility of a ban.
Frequently Asked Questions
Q: What is the current status of the TikTok ban?
A: The ban is set to take effect on Sunday, January 19.
Q: What is Perplexity’s proposal for TikTok?
A: Perplexity has submitted a bid to merge with TikTok US, creating a new entity combining Perplexity, TikTok US, and new equity partners.
Q: Will most investors in ByteDance be able to retain their equity?
A: Yes, according to the source, most investors in TikTok’s parent company, ByteDance, would be able to retain their equity.
Q: What is the goal of the merger?
A: The goal of the merger is to bring more video to Perplexity’s AI search engine.
