(Reuters) – U.S. search engine startup Perplexity AI submitted a bid to TikTok’s Chinese parent ByteDance on Saturday to merge with TikTok US, a source familiar with the company’s plans told Reuters.
TikTok could face a US ban starting Sunday if it doesn’t cut ties with ByteDance, although President-elect Donald Trump said on Saturday he would likely ban the short-video social-media platform on Monday. will give 90-day relief to
CNBC first reported the offer.
Trouble will merge with TikTok US and merge the merged company with New to create a new entity Capital Partners (WA:), said the person.
Perplexity’s proposed new structure would allow most of ByteDance’s existing investors to retain their equity stakes and bring more video to Perplexity, the source said, requesting anonymity because the matter is confidential.
TikTok did not immediately respond to requests for comment. New Capital Partners could not immediately be reached.
Perplexity AI believes its bid could be successful because the proposal is a merger rather than a sale, the person said.
Perplexity AI’s search tools enable users to find quick answers to questions along with sources and references. It is powered by large language models that can synthesize and generate information, from OpenAI to Meta Platforms (NASDAQ:)’ open-source model Llama.
TikTok, which has captivated nearly half of Americans, powered small businesses and shaped online culture, said Friday it will go dark in the U.S. on Sunday unless President Joe Biden’s administration approves Apple (NASDAQ: ) and does not trust companies like Google. NASDAQ:) that they will not face enforcement action if the ban takes effect.
