Just one day before TikTok’s expected shutdown in the US, Perplexity AI startup submitted a proposal to TikTok’s parent company, ByteDance, proposing a merger that would allow it to continue operating. CNBC Reports. Quoting an anonymous source, CNBC Reports state that the proposed merger would “create a new entity combining Perplexity, TikTok US, and New Capital Partners.” This comes after the Supreme Court on Friday unanimously ruled to uphold the law requiring ByteDance to sell TikTok or it will be banned in the United States. The company has so far resisted the idea of selling.
according to CNBCSource Perplexity — which currently offers an AI-powered search engine and is being sued by news organizations for copyright infringement — hopes a merger will be more attractive to ByteDance rather than a sale. “The new structure will allow most of ByteDance’s existing investors to retain their equity stakes and will bring more video to Perplexity.” CNBC Reports. If ByteDance accepts the proposal, there is a possibility that the company could get a 90-day extension from Trump to reach a deal, which he said. NBC NewsKristin Welker said he “probably” will do so when he takes office on Monday. But there’s no indication yet that ByteDance will go that route.
Despite widespread speculation about potential buyers, Tik Tok said “It will be forced to go dark on January 19” when the law takes effect unless the Biden administration “immediately provides a final statement to satisfy the most critical service providers to ensure non-enforcement.” However, the outgoing administration is said to be leaving all of that to Trump’s team to handle. per MSNBCWhite House press secretary Karine Jean-Pierre called TikTok’s shutdown claim a “stunt” and said, “We see no reason for TikTok or other companies to take action in the next few days before the Trump administration takes office on Monday.”
Jean-Pierre said: “We have made our position clear and straightforward: the measures necessary to implement this law will fall upon the next administration.” MSNBC. “So TikTok and other companies should address any concerns with them.”