Perplexity AI Proposes TikTok Merger with 50% Ownership for US Government
In a bold move that could reshape the future of social media,Perplexity AI,a US-based startup,has submitted a revised proposal to ByteDance,the parent company of TikTok,offering a merger that would grant the US government a 50% stake in a newly established entity. This proposal, submitted on January 26, 2025, aligns with the policies of former President Donald Trump, who has long advocated for US control over the popular video-sharing platform.
President Trump, speaking to reporters aboard Air Force One on January 28, 2025, emphasized the importance of the deal for national interests. “Currently, many people have talked to me. Which is very crucial. Which we are all interested in. And the united States will be very useful. I will approve the agreement only when the united States is benefited,” he stated.
The Perplexity AI proposal outlines a plan where the US government would hold half of the shares in the new company, which would be formed through a merger of Perplexity and TikTok’s US operations.Though, the government’s shares would not carry voting rights, nor would it have any portrayal on the new company’s management board. This structure ensures that while the government has a financial stake,it does not interfere with the company’s operations.
Additionally, the proposal stipulates that the new management board must consist entirely of Americans, though ByteDance would not be required to sever its ties with TikTok entirely. this approach aims to balance national security concerns with the need to maintain the platform’s global appeal.
The revised proposal comes after Perplexity AI presented a preliminary plan on January 18, 2025, which involved merging with tiktok alongside other investors. The latest iteration, however, focuses on creating a standalone entity with important government involvement.
Key Points of the Proposal
| Aspect | Details |
|————————–|—————————————————————————–|
| US Government Stake | 50% ownership in the new entity |
| Voting Rights | No voting power for the government |
| Management Board | Entirely american, with no government representation |
| ByteDance Involvement| No requirement to sever ties with TikTok |
| IPO Valuation | Proposed at a minimum of $300 billion |
This proposal marks a significant step in the ongoing debate over TikTok’s future in the US. With a two-month deadline to find an American buyer, the clock is ticking for ByteDance to make a decision.As the world watches, the potential merger between Perplexity AI and TikTok could set a precedent for how governments and private companies navigate the complex intersection of technology, national security, and global commerce.
For more details on the evolving situation,visit the original sources here, here, and here.
