Perplexity AI submits bid to merge with TikTok

Perplexity AI seeks to merge with TikTok US amid ByteDance's hesitance to sell.

: Perplexity AI, led by CEO Aravind Srinivas, has put forward a bid to merge with TikTok US, amid looming bans in the US. The proposal includes the creation of a new entity involving Perplexity, TikTok US, and new equity partners. There is uncertainty with the January 19 deadline enforcing a sale or ban, and the incoming administration might extend the deadline by 90 days. TikTok remains hesitant to sell, but Perplexity sees a merger as a viable alternative.

Perplexity AI has officially submitted a bid to merge with TikTok US, as reported by CNBC and confirmed by TechCrunch. The proposed merger aims to combine Perplexity, TikTok US, and new equity partners, potentially allowing most investors from ByteDance to retain their stakes while integrating more video content into Perplexity's AI search engine.

A significant legal deadline set for January 19 imposes that ByteDance must either sell TikTok or face a ban in the US. This deadline coincides with President Joe Biden’s last day in office, and the incoming President-elect Donald Trump has indicated a possible 90-day extension, though TikTok is prepared to shut down without guarantees.

Despite popular interest, ByteDance has consistently expressed no intention to sell TikTok, labeling rumors of an acquisition by Elon Musk as unfounded. Perplexity AI is pursuing a merger strategy, hoping to overcome ByteDance's reluctance and provide TikTok a stable corporate future.

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