As the threat of a TikTok ban in the US becomes more prominent, tech firm Perplexity AI has presented a merger proposal to TikTok, aiming for a corporate unification.
Reports started surfacing about Perplexity AI’s strategic interest on CNBC. A reliable source confirmed to TechCrunch that Perplexity AI has formally presented a merger offer to TikTok’s US operation.
Insider details reveal that the proposed merger would give birth to a new corporate identity comprising Perplexity AI, TikTok US and new equity partners. Investors in TikTok’s parent company ByteDance would retain their stakes. The merger aims to bring more video content to Perplexity’s AI search engine.
A mandate requiring ByteDance to sell TikTok or face a ban in the US could be enforced as early as January 19. Administration officials from the outgoing President Joe Biden have stated that the actual implementation of the ban would fall to the forthcoming administration.
President-elect Donald Trump, supposed to take office the next day, hinted at a possible 90-day extension for TikTok. Meanwhile, TikTok stated they will “go dark” on Sunday, without a clear assurance from the incoming Biden administration denouncing the enforcement.
ByteDance, despite numerous interested buyers, publicly maintains it does not plan on selling TikTok. However, Perplexity AI hopes to evade these reservations by proposing a merger, not a direct sale.
Both TikTok and Perplexity AI have been contacted for comments but are yet to respond.
Original source: Read the full article on TechCrunch
