Perplexity AI has updated its offer to merge with TikTok, suggesting a new structure that would involve the U.S. government owning 50% of the company after it goes public.
![]()
Perplexity AI's New Proposal for TikTok Merge
This proposal aims to address concerns over TikTok's control while keeping it in U.S. hands.
![]()
Creation of NewCo and ByteDance’s Role
The plan involves forming a new holding company called “NewCo.” ByteDance would contribute TikTok's U.S. operations (excluding its algorithm) to this company. In exchange, ByteDance’s existing investments would help build equity for the new entity, and Perplexity AI’s investors would get a share of the company.
U.S. Government Ownership and IPO Details
Under the proposal, the U.S. government would own up to 50% of NewCo after an initial public offering (IPO) valued at $300 billion. While the government would hold significant ownership, it would not have a seat on the board or voting rights, based on feedback from the Trump administration. Trump had previously stated that a 50% U.S. ownership stake would protect TikTok and keep it in good hands.
Other Competitors for TikTok's U.S. Operations
Perplexity AI is not the only company interested in TikTok’s U.S. business. Other potential buyers include a group led by billionaire Frank McCourt, in partnership with Project Liberty, and a consortium led by Jesse Tinsley, which features popular YouTuber MrBeast. These groups are also vying for control of TikTok’s U.S. operations.
The official link of this news is https://bestofai.com/article/perplexity-ai-wants-to-buy-tiktok-and-give-the-us-government-a-big-stake.