US-based AI company Perplexity submits revised bid for TikTok: Report
US-based artificial intelligence (AI) company Perplexity has reportedly submitted a revised proposal to merge with the Chinese short-form video platform TikTok.
Last week, US President Donald Trump signed an executive action that delays the enforcement of the nationwide TikTok ban in the US for 75 days.
According to a TechCrunch report, citing sources, the revised Perplexity proposal would give the US government up to 50 percent ownership of the new entity.
Perplexity had previously proposed creating a new company by combining itself with TikTok US and additional equity investors.
Under the new bid, the US government would receive its stake after an initial public offering of at least $300 million, while TikTok’s current Chinese owner ByteDance could also retain ownership.
TikTok briefly went down last week due to a law requiring ByteDance to sell the app or face a ban in the United States. However, it resumed operations after Trump stated he would sign an executive order extending the ban deadline.
Trump’s executive order directed his Attorney General to refrain from imposing fines on app stores and service providers that continue to support TikTok.
TikTok CEO Shou Chew attended Trump’s inauguration, seated next to Tulsi Gabbard, who is nominated to serve as director of national intelligence. The company also sponsored a Washington party to celebrate the inauguration.
The law required that starting January 19, TikTok be banned in the US unless it sold to a buyer from America or one of its allies. The law gives the President broad discretion on how to enforce the ban.
Trump has emphasized the need for a “level-playing field” with China regarding trade issues. He also held a telephone conversation with Chinese President Xi Jinping, discussing a range of issues including trade, fentanyl, and TikTok.
