Perplexity AI bids for TikTok and proposes innovative merger plan

As the U.S. TikTok ban is about to take effect, AI search company Perplexity AI has joined the bidding, providing a new possibility for this popular short video application.

According to people familiar with the matter, Perplexity has submitted a proposal to merge with TikTok US. What is unique about this plan is that it will take the form of a merger rather than a direct acquisition, and will create a new entity integrating Perplexity, TikTok US and new equity partners. Notably, the plan allows most investors in TikTok parent company ByteDance to retain their equity.

For Perplexity, the merger also makes strategic sense. By integrating TikTok’s video resources, the company is expected to bring richer video content to its AI search engine.

However, ByteDance has been cautious about selling TikTok. The company has repeatedly stated that it has no intention of selling and has dismissed previous rumors that it would accept other acquisition options. The merger plan proposed by Perplexity seems to be precisely to resolve this concern of ByteDance.

Currently, a bill requiring ByteDance to sell TikTok is about to take effect, and TikTok’s fate remains unresolved. At this critical moment, the addition of Perplexity adds new variables to this high-profile transaction.