Perplexity Bids for TikTok: Latest News & Updates

Perplexity AI’s Revised TikTok Merger Proposal

Perplexity AI has put forward an updated proposal concerning a potential merger with TikTok. This new arrangement contemplates the U.S. government acquiring a stake of up to 50% in the resulting company.

Initial Reports and Confirmation

The Associated Press was the first news outlet to detail the revised proposal. A source familiar with the bid has since verified to TechCrunch the accuracy of the AP’s reporting.

Details of the New Bid

Previously, the AI search engine suggested forming a new entity through the combination of Perplexity, TikTok US operations, and contributions from other equity investors.

Under the current bid, the government’s ownership percentage would be realized following an initial public offering (IPO) valued at a minimum of $300 billion. ByteDance, TikTok’s parent company based in China, could potentially maintain a degree of ownership as well.

Response to Administrative Feedback

Reports indicate that Perplexity adjusted its offer in response to input received from the administration of President Donald Trump.

Recent TikTok Disruptions and Trump’s Stance

TikTok experienced a temporary outage last weekend. This was triggered by legislation requiring ByteDance to divest the app or face a ban within the United States.

Service was restored after President Trump indicated he would sign an executive order extending the deadline for a sale. He also expressed a desire for the U.S. to hold a “50% ownership” position, though the specific nature of this ownership – governmental or private – remained unclear.

Ongoing Negotiations and Potential Alternatives

Further reports this week have suggested that the White House is engaged in discussions regarding a deal that would involve Oracle. Oracle currently provides the infrastructure supporting TikTok’s U.S. user traffic.

When questioned about this possibility, President Trump stated he has communicated with “many people about TikTok,” but clarified that he has not had discussions specifically with Oracle.