Perplexity AI Revises Merger Proposal with ByteDance with US Owning 50%

Perplexity is a U.S. search engine startup. AI has made changes to the merger proposal it sent to ByteDance, the Chinese parent company of TikTok, in order to combine Perplexity and TikTok U.S. into a new company. According to the sources.

The plan stipulates that in a future initial public offering (IPO), the U.S. government will hold up to 50% of the new business. The establishment of a new U.S. holding company named "NewCo" was suggested in a Perplexity paper distributed to ByteDance and new investors.

ByteDance would sell TikTok U.S. to the investors as part of the plan, giving TikTok's current investors stock in the business. According to the source, ByteDance would retain TikTok's main recommendation system, which would not be included in the proposal.

After the new organization goes through an initial public offering (IPO) with a minimum valuation of $300 billion, the U.S. government would own up to half of it. According to the source, Perplexity AI would also propose to be purchased by the holding company provided its own investors were given a share of the NewCo's stock.

Following U.S. President Donald Trump's announcement last week that he would restore TikTok's access in the nation if he regained power, the app's services were resumed. Due to a law citing national security, TikTok blocked its app for users in the United States.