Perplexity AI has revised its merger proposal for TikTok's U.S. operations, now allowing the U.S. government to own up to 50% of the new company following a future IPO. The revised proposal creates a new U.S. holding company, 'NewCo', where ByteDance would contribute TikTok U.S. (excluding its core algorithm) in exchange for equity, and Perplexity AI would contribute itself for its investors to receive NewCo equity. Funding would come from new third-party investors. The proposed structure aims to retain ByteDance's existing investors' stakes and introduce more video content to Perplexity.
Perplexity AI on Sunday revised the merger proposal it had submitted to TikTok parent ByteDance. The proposal, which would create a new entity combining Perplexity and TikTok U.S., would now also allow for the U.S. government to own up to 50% of the new company upon a future IPO, CNBC has learned.
A proposal document viewed by CNBC, which was shared with ByteDance and prospective new investors, detailed the creation of a new U.S. holding company,"NewCo." The document proposes ByteDance contribute TikTok U.S., minus its core recommendation algorithm, in exchange for the company's existing investors receiving equity in the new company. Perplexity AI would offer itself up in exchange for its own investors receiving a distribution of the NewCo equity.
A fair price is"well north of $50 billion" but the final number attached to the proposal will be decided, in part, by which of ByteDance's existing shareholders want to remain part of the new entity and which want to cash out, according to the source.has so far temporarily restored TikTok in the U.S. and suggested plans that would involve an American stakeholder purchasing the company and then selling a 50% stake to the U.S. government.
Perplexity is one of multiple companies and individuals vying to be the one to purchase or merge with TikTok, which reportedly includeMeta is paying creators to promote Instagram on other short-form video apps
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Perplexity AI has reportedly submitted an 11th-hour bid to save TikTok in the USCheyenne is Engadget’s weekend editor and covers a little bit of everything. She’s particularly interested in emerging technology and niche gadgets, climate change, space, privacy, and internet culture. She’ll talk your ear off about Tamagotchis if you get her started.
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