Perplexity AI Seeks to Save TikTok U.S. with Merger Proposal

Perplexity AI has proposed a merger with TikTok U.S. to prevent a pending ban due to its ties with ByteDance. The startup aims to create a new entity combined with New Capital Partners, ensuring ByteDance investors retain equity. The merger would enhance Perplexity's video capabilities.

In a move to potentially circumvent TikTok's looming U.S. ban, startup Perplexity AI has made a bid to merge with the video-sharing app's U.S. operations, sources revealed to Reuters.

TikTok, facing a cessation order unless it severs ties with its parent company ByteDance, might find respite as Perplexity proposes a merger. The plan suggests a new unified entity incorporating investments from New Capital Partners, maintaining ByteDance's existing investor stakes.

Perplexity's strategic approach hinges on enhancing its platform by integrating TikTok's video prowess, hoping the deal's merger nature, instead of a sale, gains approval. The move comes amid urgent negotiations as TikTok demands certainties from the U.S. administration to avoid enforcement actions.

(With inputs from agencies.)