Perplexity bids for TikTok's U.S. operations with U.S. control proposal

AI startup Perplexity has confirmed its bid for TikTok's U.S. operations, proposing a deal it believes satisfies both investors and U.S. government interests. CEO Aravind Srinivas stated that the offer includes a significant ownership stake for the U.S., addressing concerns about foreign control.

Perplexity's January bid to TikTok's parent company, ByteDance, proposes combining the two entities. A potential future IPO would grant the U.S. warrants representing 50% ownership of the combined company. This offer comes after TikTok's U.S. operations were briefly suspended and subsequently reinstated, with proposed terms similar to those offered by Perplexity.

A key aspect of the proposal is establishing clear U.S. control over the new entity. Perplexity's Chief Business Officer, Dmitry Shevelenko, emphasized the goal of ensuring accountability, with American leadership empowered to make key decisions, including hiring and firing the CEO.

Beyond the ownership structure, Perplexity highlights potential synergies between the two platforms, particularly in search functionality. With younger users increasingly turning to TikTok for real-time video search results, the combined company could become a significant competitor to Google, a company that has faced scrutiny over alleged censorship. Srinivas expressed hope that this new structure could provide a counterbalance to Google's dominance in search and video. ByteDance and TikTok have not yet responded to inquiries about the bid.

Also Read: Perplexity AI proposes U.S. government stake in TikTok