The ban on TikTok in the United States is about to take effect, and its fate is uncertain. AI search company Perplexity AI unexpectedly joined the bidding, proposing a unique merger rather than an outright acquisition. This provides new possibilities for the future development of TikTok, and also adds new variables to this ongoing international incident.
According to people familiar with the matter, Perplexity has submitted a proposal to merge with TikTok US to create a new entity that integrates Perplexity, TikTok US and new equity partners. This move cleverly allows the majority of ByteDance's investors to retain their equity, which may effectively resolve ByteDance's previous reluctance to sell TikTok. In this plan, Perplexity hopes to use TikTok’s video resources to enrich the content of its AI search engine. However, there is still uncertainty as to whether ByteDance will ultimately accept this plan. Currently, the relevant bill is about to take effect, and TikTok’s final fate is still unresolved. Perplexity’s intervention has undoubtedly brought new variables to the transaction.
For Perplexity, the merger also makes strategic sense. By integrating TikTok’s video resources, the company is expected to bring richer video content to its AI search engine.
However, ByteDance has been cautious about selling TikTok. The company has repeatedly stated that it has no intention of selling and has dismissed previous rumors that it would accept other acquisition options. The merger plan proposed by Perplexity seems to be precisely to resolve this concern of ByteDance.
Currently, a bill requiring ByteDance to sell TikTok is about to take effect, and TikTok’s fate remains unresolved. At this critical moment, the addition of Perplexity adds new variables to this high-profile transaction.
Perplexity’s proposal provides new possibilities for TikTok’s future, but the final result still depends on Bytedance’s decision and the implementation of relevant laws and regulations. This will undoubtedly be a game that continues to affect the nerves of the global technology community.