AI company proposes merger with TikTok giving US 50% stake
Perplexity AI, a startup company, has proposed a merger with TikTok, suggesting that the U.S.government should own a 50% stake in the platform.This is the company’s second attempt to acquire TikTok, following an initial offer made in January. Lawmakers in the U.S. have long expressed concerns over TikTok’s ties to its Chinese parent company, ByteDance, leading to a temporary ban in January, although the app was quickly reinstated. The latest proposal implies a potential initial public offering worth at least $300 billion. TikTok has historically resisted such divestiture efforts, opting to challenge a ban imposed during former President Joe Biden’s administration in court, wich was upheld by the Supreme court. Despite ongoing speculation regarding potential buyers, TikTok has denied any interest in being acquired by other notable figures. Currently, TikTok remains inaccessible in U.S. app stores,tho users who had previously downloaded it still have access.
AI company proposes merger with TikTok that gives US government 50% stake
Startup Perplexity AI made its second bid to buy TikTok, this time with a proposal to have the U.S. government own 50% of the platform.
Lawmakers have long opposed TikTok’s algorithm since its parent company, ByteDance, is Chinese-owned. A ban went into effect as expected on Jan. 19, but the app was back online hours after TikTok stopped service in the United States.
The latest proposal was reported by a source who said they were unauthorized to speak on it publicly, per the Associated Press. Perplexity AI is suggesting an initial public offering of at least $300 billion in its second try to win over the platform.
The startup made an offer on Jan. 18 before the app temporarily went dark, but TikTok did not accept.
TikTok thanked President Donald Trump for giving “the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans.” Trump says he has had a “good experience” with TikTok since joining the platform during his campaign. The president promised a week after joining that he “will never ban TikTok.” Since then, Trump has gained over 14 million followers.
TikTok hadn’t pursued divestiture when former President Joe Biden signed the ban into law, opting instead to challenge it in court. The Supreme Court ruled the Protecting Americans from Foreign Adversary Controlled Applications Act was not a violation of the platform’s First Amendment right.
The Washington Examiner previously contacted TikTok for comment amid speculation that the company would be purchased by YouTuber Mr. Beast or X owner Elon Musk, but TikTok spokesman Michael Hughes flatly denied any interest.
“We can’t be expected to comment on pure fiction,” Hughes told the Washington Examiner.
TikTok is still banned from U.S. app stores, but users who kept the app on their phones before Jan. 19 still have access to it.
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