Perplexity AI suggests new U.S.-controlled entity with U.S. govt holding up to 50% stake.

From Investing.com: 2025-01-26 21:15:33

Perplexity AI has updated its merger proposal to ByteDance, suggesting the formation of a new U.S.-controlled entity incorporating Perplexity and TikTok U.S. The plan involves a new U.S. holding company called “NewCo” and proposes U.S. government holding up to a 50% stake in NewCo following an IPO valued at $300 billion.

The proposal aims to address national security concerns surrounding TikTok’s future in the U.S. President Trump is in talks with multiple parties over TikTok’s fate, with a decision expected within 30 days. Perplexity AI’s innovative approach combines merger and investment strategies to navigate political hurdles.

ByteDance would retain ownership of TikTok’s core recommendation algorithm under the revised proposal. TikTok services were restored in the U.S. last week, allowing continued operations as discussions about potential restructuring continue. Regulatory scrutiny and competition for a stake in TikTok remain ongoing challenges.



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