In a smart move to prevent TikTok’s impending ban in the United States, an artificial intelligence startup Perplexity AI has submitted a merger proposal to ByteDance. ByteDance is TikTok’s Chinese parent company. The goal of this proposal is to merge Perplexity AI with TikTok U.S., and new capital partners into a new entity. Which allows ByteDance’s current investors to retain their equity stakes.
TikTok’s Legal Challenge
“Fox & Friends” co-host Brian Kilmeade and Sen. Rand Paul, R-Ky., argued on live television about who owns TikTok’s parent company, ByteDance Ltd. Their heated exchange happened a day after the U.S. House passed the bipartisan bill that could lead to the popular app being banned in the U.S.
Furthermore, the U.S. government has raised national security concerns over TikTok’s Chinese ownership. Failure to comply with the bill would result in a ban of the app within the country. While ByteDance has been hesitant to sell, the impending deadline has prompted various potential solutions.
Perplexity AI’s Ambitious Bid
Perplexity AI is said to be worth approximately $9 billion and is involved in search engine creation. Moreover, they are merging now for the purpose of enriching their technology profile. A combination like this promises even better services and technologies by combining the AI capacities with the huge user base TikTok has. This method is distinct from a ‘full-bid’ acquisition by directing attention toward cooperation and mutual growth.
Governmental Response and Potential Outcomes
President Donald Trump has expressed his interest in granting a 90-day extension on the ban. This is to give ByteDance more time to conclude the agreement. As a result, the negotiations within ByteDance is likely to be easier due to the extension, which might involve the new voice of Perplexity AI.

However, the merger will only be a success if it is properly coordinated among the various buyers and sellers. At the same time, it should be approved by the country’s regulatory and other concerned parties.
And an interesting question to answer is Could China influence TikTok if it doesn’t have ownership?
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