Just one day before TikTok is expected to shut down in the US, startup Perplexity AI has submitted a bid to TikTok’s parent company ByteDance proposing a merger that would allow it to continue operating, CNBC reports. Citing an anonymous source, CNBC reports that the proposed merger would “create a new entity combining Perplexity, TikTok US and New Capital Partners.” It comes after the Supreme Court on Friday ruled unanimously to uphold a law that requires ByteDance to sell TikTok or it will be banned in the US. The company has so far resisted the idea of a sale.
According to CNBC’s source, Perplexity is hoping a merger rather than a sale will be more appealing to ByteDance. “The new structure would allow for most of ByteDance’s existing investors to retain their equity stakes and would bring more video to Perplexity,” CNBC reports. If ByteDance were to accept the proposal, there’s a chance the company would be given a 90-day extension by Trump to work out a deal, which he told NBC News’ Kristen Welker that he would “most likely” do when he takes office on Monday. But there is as yet no indication that ByteDance will go this route.
Despite rampant speculation about potential buyers, TikTok said it will “be forced to go dark on January 19” when the law takes effect unless “the Biden Administration immediately provides a definitive statement to satisfy the most critical service providers assuring non-enforcement.” The outgoing administration, however, reportedly says it’s leaving all that for the Trump team to deal with. Per MSNBC, White House Press Secretary Karine Jean-Pierre called TikTok’s claim about shutting down “a stunt,” and said “we see no reason for TikTok or other companies to take actions in the next few days before the Trump Administration takes office on Monday.”
“We have laid out our position clearly and straightforwardly: actions to implement this law will fall to the next administration,” Jean-Pierre said, according to MSNBC. “So TikTok and other companies should take up any concerns with them.”
