As the TikTok ban in the United States is about to take effect, AI search company Perplexity AI has joined the bidding war, offering a new possibility for this popular short video app.
According to sources familiar with the matter, Perplexity has submitted a proposal to merge with TikTok US. What makes this proposal unique is that it involves a merger rather than a direct acquisition, which would create a new entity integrating Perplexity, TikTok US, and new equity partners. Notably, this plan allows most investors of TikTok's parent company, ByteDance, to retain their shares.
For Perplexity, this merger also holds strategic significance. By integrating TikTok's video resources, the company hopes to enrich its AI search engine with more diverse video content.
However, ByteDance has been cautious about selling TikTok. The company has repeatedly stated its intention not to sell and has denied previous rumors about considering other acquisition offers. Perplexity's proposed merger seems aimed at alleviating ByteDance's concerns.
Currently, the bill requiring ByteDance to sell TikTok is about to take effect, and TikTok's fate remains uncertain. At this critical moment, Perplexity's involvement adds a new variable to this highly anticipated deal.
