Perplexity AI has submitted a revised proposal to merge with TikTok, offering the U.S. government up to 50 percent ownership of the new entity. This new bid follows an earlier proposal to create a company that combines Perplexity, TikTok US, and other equity investors. Under the updated terms, the government would acquire its stake after an initial public offering of at least $300 million, while ByteDance, TikTok's current Chinese owner, could maintain ownership.
The revision of the bid was influenced by feedback from President Donald Trump’s administration. Recently, TikTok faced a temporary shutdown due to a law requiring ByteDance to sell the app or risk a ban in the U.S. However, the app resumed operations after Trump indicated he would sign an executive order to extend the sale deadline. He also expressed a desire for the U.S. to have “50% ownership,” though it remains unclear if this pertains to the government or U.S. investors.
Additionally, reports surfaced about the White House negotiating a deal for Oracle to take over TikTok, as it already manages the infrastructure for TikTok’s U.S. traffic. Trump mentioned he has discussed TikTok with various parties but did not confirm any talks with Oracle.
