Perplexity AI proposes new plan to TikTok’s parent company
Date
1/27/2025 2:54:47 AM
(MENAFN) Perplexity AI has proposed a new plan to TikTok’s parent company, ByteDance, that would enable the U.S. government to own up to 50 percent of a newly created entity combining Perplexity with TikTok’s U.S. operations. The proposal, which was submitted last week, revises an earlier plan presented by the AI startup on January 18, just before the law banning TikTok took effect.
The initial proposal, which ByteDance has yet to respond to, aimed to merge the San Francisco-based Perplexity with TikTok’s U.S. business and bring in investments from other parties. The updated proposal includes a provision allowing the U.S. government to own as much as half of the new entity once it goes public, with an initial offering valued at USD300 billion. This new proposal incorporates feedback from the Trump administration.
If successful, the U.S. government’s ownership stake would not grant it voting rights or a seat on the company’s board, according to the source. ByteDance would not be required to sever all ties with TikTok but would have to allow the new entity to have full U.S. board control.
Under the revised proposal, ByteDance would contribute TikTok’s U.S. operations to the new structure, excluding the app’s proprietary algorithm. In return, ByteDance’s current investors would receive equity in the new company. Neither ByteDance nor TikTok immediately commented on the proposal.
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