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American Focus > Blog > Tech and Science > Perplexity submits a new bid for TikTok
Tech and Science

Perplexity submits a new bid for TikTok

Last updated: January 26, 2025 6:47 pm
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Perplexity submits a new bid for TikTok
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Perplexity AI Submits Revised Proposal to Merge with TikTok

Perplexity AI has put forth a new proposal to merge with TikTok, with a unique arrangement that could potentially give the U.S. government up to 50 percent ownership of the combined entity. This development was first reported by The Associated Press and has been confirmed by sources familiar with the bid.

Previously, the AI search engine had suggested the creation of a new company by merging Perplexity, TikTok US, and other equity investors. However, the revised bid now includes a provision for the government to acquire its stake post an initial public offering worth at least $300 million. ByteDance, the current Chinese owner of TikTok, may also retain ownership under this new proposal.

The decision to amend the bid was influenced by feedback from President Donald Trump’s administration. This move comes in the wake of a recent incident where TikTok faced a temporary shutdown due to regulatory pressures on ByteDance to sell the app or face a ban in the U.S. Fortunately, the app was revived after Trump announced his intention to extend the sale deadline through an executive order. He also expressed interest in seeing the U.S. acquire “50% ownership” of TikTok, although the specifics of this ownership remain unclear.

Recent reports have suggested that negotiations are underway for Oracle, an existing provider of TikTok’s U.S. infrastructure, to take over the app. When questioned about these talks, Trump mentioned having discussions with various parties regarding TikTok but denied direct communication with Oracle.

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