Perplexity AI and ByteDance Revise Merger: U.S. Government Stake Introduced

Perplexity AI updated its merger proposal with TikTok's parent company, ByteDance. The new agreement includes a provision allowing the U.S. government to acquire up to 50% ownership of the new entity after a future IPO. This development was reported by CNBC.

Perplexity AI has made significant changes to its earlier merger proposal with TikTok's parent company, ByteDance, as reported by CNBC on Sunday.

The revised plan envisions forming a new company that merges Perplexity with TikTok U.S., while introducing a novel feature—a provision authorizing the U.S. government to obtain up to a 50% stake in the enterprise following its future public offering.

This new development underscores growing complexities in corporate mergers involving international entities, especially amid increasing governmental scrutiny and intervention in tech company operations.

(With inputs from agencies.)