Perplexity AI's Bold Bid: Merging with TikTok U.S.

Perplexity AI proposes a merger with TikTok U.S., offering a new U.S. holding company where the U.S. government would own up to 50% post-IPO, excluding TikTok's core algorithm. The proposal aims to create 'NewCo', enhancing investor equity without compromising algorithm assets. Discussions continue as U.S. leaders deliberate TikTok's future.

In a bold business move, U.S. startup Perplexity AI has revised its merger proposal with ByteDance's TikTok U.S., aiming to form a new entity named 'NewCo', according to a person familiar with the plan.

The plan involves ByteDance selling TikTok U.S. to investors, thereby preserving TikTok's core recommendation algorithm for ByteDance while offering investors equity.

Under this proposal, the U.S. government would potentially own up to 50% of the company following an IPO, which could value the new entity at $300 billion, strategically boosting national interests.

(With inputs from agencies.)