As the threat of a TikTok ban looms in the United States, Perplexity AI has emerged as a potential bidder looking to provide the video app with a new corporate home.
CNBC first reported on Perplexity’s interest. A source familiar with the offer confirmed to TechCrunch that Perplexity, led by CEO Aravind Srinivas, has indeed submitted a bid to merge with TikTok US.
Additional details about the bid have also been confirmed by the source, including the creation of a new entity that combines Perplexity, TikTok US, and new equity partners; the potential for most investors in ByteDance, TikTok’s parent company, to retain their equity; and the aim to enhance Perplexity’s AI search engine with more video content through the merger.
A law mandating ByteDance to either sell TikTok or face a ban in the US is scheduled to come into effect on Sunday, January 19, which is President Joe Biden’s final day in office. Officials from the incoming administration have indicated that the enforcement of the ban will be left to them.
Meanwhile, President-elect Donald Trump, who will be inaugurated on Monday, has indicated that he will likely grant TikTok a 90-day extension to avoid the ban, with TikTok’s CEO expressing gratitude for his actions in a video.
However, TikTok has stated that without clearer assurances from the Biden administration regarding non-enforcement, they may be forced to cease operations on Sunday.
Despite interest from several potential buyers, ByteDance has consistently maintained that they do not plan to sell. Perplexity is reportedly attempting to address these reservations by proposing a merger rather than an outright sale.
TechCrunch has reached out to both TikTok and Perplexity AI for further comments.
