(Reuters) – Perplexity AI has formally requested ByteDance, the Chinese parent company of TikTok, to grant permission for a merger involving the U.S. search engine startup and TikTok U.S., as reported by CNBC on Saturday.
Facing the looming threat of a U.S. ban set to commence on Sunday unless distancing measures from ByteDance are taken, TikTok has received a potential lifeline from President-elect Donald Trump. Trump conveyed on Saturday that he is inclined to extend a 90-day reprieve to the popular short-video social media platform, offering temporary respite from the ban.
The proposal put forth by Perplexity suggests the formation of a new entity through the merger, uniting TikTok U.S., ByteDance, and New Capital Partners. Notably, the structure envisions the preservation of equity stakes for the majority of ByteDance’s current investors while ushering in a greater influx of video content for Perplexity. This information was disclosed by an undisclosed source familiar with the matter, according to the report by CNBC.
Requests for comments from both Perplexity AI and TikTok have not been promptly addressed, while New Capital Partners remains unreachable at this time.
Perplexity AI appears optimistic about the prospects of its bid, asserting that the proposition is structured as a merger rather than a straightforward sale. The potential success of this bid is underscored by the belief that a merger presents a more favorable alternative in the eyes of all stakeholders involved.
Specializing in providing rapid responses to inquiries accompanied by thorough sourcing and citations, Perplexity AI leverages expansive language models to extract and generate information efficiently. The platform draws upon a diverse array of models ranging from OpenAI to Meta Platforms’ open-source Llama model.
In light of the impending ban, TikTok, a platform that has captured the attention of nearly half of the American populace, empowered numerous small businesses, and significantly influenced online cultural trends, has announced its intention to cease operations in the U.S. effective Sunday. This decision hinges on the precondition that the incoming administration under President Joe Biden provides assurances to tech giants such as Apple and Google, safeguarding them against potential enforcement actions in the event of a ban being enacted.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Cynthia Osterman and Rod Nickel)
