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

Perplexity AI, an AI search engine startup, has submitted a bid to merge with TikTok's U.S. operations.
The proposed new structure would allow most of ByteDance's (TikTok's parent company) existing investors to retain their equity stakes, and would bring more video content to Perplexity.
Perplexity AI started 2024 with a $500 million valuation and ended the year at around $9 billion, as investors have shown increasing interest in AI-assisted search amid the generative AI boom.
Any potential deal between Perplexity and ByteDance would likely take months to complete, but President-elect Trump said he would "most likely" give TikTok 90 more days to work out a deal.
ByteDance has publicly implied it will not sell TikTok's U.S. operations, which is why Perplexity believes a merger proposal has a better chance.
The source believes a fair price for the deal would be "well north of $50 billion", but the final number will depend on which of ByteDance's existing shareholders want to remain part of the new entity.
AI-assisted search has been viewed as a key risk for Google, as it potentially changes how consumers access information online.
OpenAI introduced a search engine called SearchGPT last year, while Google launched "AI Overviews" in search to provide quick summaries.
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.
The proposed merger between Perplexity and TikTok U.S. is an attempt by Perplexity to expand its video offerings and capitalize on the growing interest in AI-powered search.