news Perplexity AI makes a bid to merge with TikTok U.S

[Cpvr]

Perplexity AI officially made a play for TikTok on Saturday, submitting a bid to its parent company, ByteDance, to create a new merged entity combining Perplexity, TikTok U.S. and new capital partners, CNBC has learned.

The new structure would allow for most of ByteDance’s existing investors to retain their equity stakes and would bring more video to Perplexity, according to a source familiar with the situation, who asked to remain anonymous due to the confidential nature of the potential deal.


Perplexity AI, the artificial intelligence search engine startup competing with OpenAI and google, started 2024 with a roughly $500 million valuation and ended the year with a valuation of about $9 billion, after attracting increasing investor interest amid the generative AI boom — as well as controversy over plagiarism accusations.

AI-assisted search has been viewed by investors as one of Google’s key risks, as it potentially changes the way consumers access information online. Last year, OpenAI, which started the generative AI craze in late 2022 with ChatGPT, introduced a search engine called SearchGPT. Google later launched “AI Overviews” in search, allowing users to see a quick summary of answers at the top of results.

Though any potential transaction between Perplexity AI and ByteDance would likely take months to complete — and TikTok has said the app will “go dark” in the U.S. on Sunday unless the Biden administration assures it won’t punish Apple, Google and other service providers for hosting it — President-elect Donald Trump told NBC News on Saturdaythat he “most likely” would give TikTok 90 more days to work out a deal after he is sworn into office on Monday.

In a video posted to TikTok on Friday, CEO Shou Zi Chew said, “I want to thank President Trump for his commitment to work with us to find a solution that keeps TikTok available in the United States.”

ByteDance has publicly implied it will not sellTikTok U.S., which is part of why Perplexity AI believes it has a shot with its bid — since the proposal is a merger rather than a sale, the source told CNBC.




The source believes a fair price is “well north of $50 billion” but that the final number attached to the proposal will be decided, in part, by which of ByteDance’s existing shareholders want to remain part of the new entity and which want to cash out.

Source: https://www.cnbc.com/2025/01/18/perplexity-ai-makes-a-bid-to-merge-with-tiktok-us.html

 

[Harsh World]

Does Kevin O'Leary have a stake in Perplexity AI?

I was watching the news a few days ago and he mentioned that he was working out a deal to secure TikTok.

Perhaps, now, it's up to who bids the most?

 

[Yama]

I don't use Tiktok but I am a huge fan of Perplexity AI. I believe if the deal is signed, Tiktok users will benefit a lot. Perplexity is very good for research.

 

[Alamson]

I see this whole saga as US-Chinese rivalry. What should have been done is to allow TikTok address the data protection and other issues raised rather than force the sale of the company to non-Chinese buyers in the name of national security. I'm not really blaming the US because the Chinese government did a similar thing with Facebook. Let's wait to see how Donald Trump handles this case.

 

[Harsh World]

Let's wait to see how Donald Trump handles this case.

Biden had already signed it into law. It might affect more than just TikTok, and from now on, there won't be any more apps available in the US market that are controlled by a foreign adversary of the United States (which includes Russia, North Korea, and Iran).

Protecting Americans from Foreign Adversary Controlled Applications Act - Wikipedia

en.wikipedia.org

 

[Heatman]

Does Kevin O'Leary have a stake in Perplexity AI?

I was watching the news a few days ago and he mentioned that he was working out a deal to secure TikTok.

Perhaps, now, it's up to who bids the most?

I think he offered $20 billion cash offer to purchase TikTok. This is some crazy amount of money we are talking about here.

 

[Harsh World]

I think he offered $20 billion cash offer to purchase TikTok. This is some crazy amount of money we are talking about here.

Ah, a classic Mr. Wonderful (Shark Tank reference) offer.

Cutting his offer of TikTok in half of what Musk bought Twitter for, when it could arguably be valued more, though I don't have the stats to make such a claim.

 

[Heatman]

Ah, a classic Mr. Wonderful (Shark Tank reference) offer.

Cutting his offer of TikTok in half of what Musk bought Twitter for, when it could arguably be valued more, though I don't have the stats to make such a claim.

Yeap! Elon Musk paid $44 billion for Twitter/X after the deal was completed on 27th October, 2022. Tiktok shouldn't be sold half of that in my opinion but I felt Kevin O'Leary is banking on Tiktok facing ban as an incentive that's going to force it to be sold in a haste to short offer on the deal.

 

[Harsh World]

Tiktok facing ban as an incentive that's going to force it to be sold in a haste to short offer on the deal.

TikTok can still have leverage with time on their side and counter, "Each day we close, with our firm asking price, TikTok will become less valuable with the exodus. So, let's write that bigger check now."

 

[Heatman]

TikTok can still have leverage with time on their side and counter, "Each day we close, with our firm asking price, TikTok will become less valuable with the exodus. So, let's write that bigger check now."

As long as Trump's executive order to delay the ban by 75 days in order to allow further negotiations to sell the app will be the final decider of what it's going to take to sell the app or have it banned in USA. Personally, I believe the owner is more willing to have the app banned in USA than sell it.

Would it be wise to cut off about 155 million users of Tiktok in USA if the ban is upheld? It's only time will tell.

 

[Fidelia1]

United States has always antagonized any company that is not originated in America and is making in-roads into the American market. If they can't drive them away, they want to have a part ownership in it. They would eventually want to have majority stake.

 

[Harsh World]

United States has always antagonized any company that is not originated in America and is making in-roads into the American market. If they can't drive them away, they want to have a part ownership in it. They would eventually want to have majority stake.

Why should any country, including the United States, let any other country profit off their People and let money and jobs leave the country?

It should be the duty of every country to first and foremost take care of their own.

If TikTok is a foreign company, and they're not creating jobs or stimulating the United States economy in any way, why not take a stake in it? It would enrich the People somehow. It's not like the United States is taking the money and it goes into their pockets, and their pockets alone. They would use that money over other people's money to, I don't know, send foreign aid. This would take some of the pressure off the backs of hard-working Americans by using that money in a way that helps them in some way, shape, or form.

I wouldn't expect Facebook to be allowed to set up an office in any country, ship in Americans to fill the roles, and try to avoid paying as much in taxes to that country as possible. It's a ripoff and a bad deal for that country. It seems like America is the only one that let it slide, for far too long in my opinion.