Perplexity AI has made a big move, signaling its intention to merge with TikTok US. According to a CNBC report, Perplexity AI, which is currently valued at $9 billion, just submitted its offer for a merger with ByteDance, TikTok’s parent company.
According to the report, the entity intends to create a bigger entity from the merger that will include TikTok US, Perplexity, and other financial backers. According to the plan, the previous ByteDance investors will still be in control of their stakes, while Perplexity will take charge of the application. According to CNBC, the deal would provide more integration for the application, while still keeping the investors happy.
ByteDance, still refusing an outright sale, means this option could be a gateway to get what it wants. The deal could be closed for as high as $50 billion, depending on the choice of investors to stay or leave.
Donald Trumps Offers TikTok US survival lifeline
The application has been scheduled to go dark tomorrow, with Google, Apple, and other firms still in the dark about whether they will face sanctions from the Biden administration. However, there is a likelihood that Donald Trump will give the application a 90-day notice after he is sworn in as president on Monday.
TikTok CEO Shou Zi Chew lauded Trump’s decision in a video, thanking him for the effort. “I want to thank President Trump for his commitment to work with us to find a solution that keeps TikTok available in the United States,” he said. The government’s crackdown on TikTok stems from its Chinese ownership causing a national threat.
According to several sources, there have been warnings that the Chinese communist party could use it to carry out espionage or propaganda. ByteDance has seriously dismissed the claims, noting that the application is independent and has no ties with Beijing. Interestingly, Trump banned the app in his first term as president, with the courts blocking his efforts at the time.
However, he called out the Congress’ divest-or-ban notice, noting that it greatly benefited close rival Facebook, which unfortunately banned him for two years. Now that he’s prepared to take back the office, he has officers watching China like a hawk. Mike Green, his National Security Advisor, will take on that role perfectly. Waltz has said TikTok will keep operating but under strict measures.