The Article Tells The Story of:
- Perplexity AI’s Proposal: The company plans to merge with TikTok US, forming a new entity with ByteDance’s equity intact.
- Ban Deadline Looms: TikTok faces a U.S. ban on January 19 unless ByteDance divests its ownership.
- ByteDance Resists Sale: Despite interest from buyers, ByteDance remains firm on retaining TikTok.
- Trump’s Possible Extension: President-elect Trump may grant TikTok 90 days to comply with the law.
Perplexity AI Proposes Merger to Keep TikTok Alive in the U.S.
With TikTok’s U.S. ban deadline approaching, Perplexity AI has entered the fray with a bold proposal. The artificial intelligence firm submitted a bid to merge with TikTok US, hoping to save the popular video-sharing platform from being banned. Sources close to the matter confirmed details about the proposal, which seeks to form a new entity combining Perplexity, TikTok US, and new equity partners.
This proposal allows most current investors in ByteDance, TikTok’s parent company, to retain their equity. Perplexity aims to integrate TikTok’s video capabilities into its AI search engine, potentially creating new synergies.
Check Out Our Article of Why TikTok Users Are Struggling on RedNote App: What Went Wrong? Published on January 15, 2025 SquaredTech
Ban Looms as ByteDance Resists Selling
A U.S. law requiring ByteDance to divest TikTok or face a nationwide ban is set to take effect on Sunday, January 19. President Joe Biden’s administration, nearing its final hours, has stated that enforcing the law will fall to the next administration. President-elect Donald Trump, set to take office on January 20, has indicated he may grant TikTok a 90-day extension to comply with the law.
TikTok CEO Shou Chew expressed gratitude to Trump for his efforts but warned that without clear assurances from the Biden administration, TikTok may have to “go dark” in the U.S. on Sunday. Despite mounting pressure, ByteDance remains firm in its stance against selling TikTok, dismissing rumors about a potential acquisition by Elon Musk as baseless.
Perplexity AI’s Ambitious Bid
Perplexity AI’s merger proposal stands out because it avoids a complete sale, which ByteDance has repeatedly resisted. The plan seeks to address national security concerns while preserving ByteDance’s equity in the U.S. entity. This approach could be more palatable to ByteDance, as it aligns with their reluctance to fully relinquish ownership.
The merger would also bring TikTok’s video features into Perplexity’s AI platform, potentially creating a powerful combination of video content and advanced search capabilities. However, the success of this proposal depends on overcoming legal hurdles and securing approvals from all parties involved.
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