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With a looming ban on TikTok in the United States, Perplexity AI is the latest bidder hoping to give the video app a new corporate home.
CNBC first reported Perplexity’s interest. A source familiar with the deal confirmed to TechCrunch that Perplexity (whose CEO is Aravind Srinivas pictured above) has submitted an offer to merge with TikTok US.
The source also confirmed other details about the offer — that it will create a new entity combining Perplexity, TikTok US and new equity partners; that most investors in TikTok’s parent company ByteDance will be able to keep their capital; and that with the merger, Perplexity hopes to bring more video to its AI search engine.
The law requiring ByteDance to either sell TikTok or ban it in the US is set to go into effect on Sunday, January 19. It will be President Joe Biden’s last day in office, and his administration officials have said yes will leave the actual implementation of the ban “to the next administration.”
Meanwhile, President-elect Donald Trump, who will be inaugurated on Monday, said he would “most likely” to give TikTok a 90-day extensionand CEO of TikTok posted a video thanking Trump for his effort.
However, TikTok said that without more explicit assurances of non-enforcement from the Biden administration, will be “forced to black out” on Sunday.
Despite numerous buyers expressing interest in TikTok, ByteDance has repeatedly said it has no intention of selling. (The company described the report which the Chinese government is open to acquisition by Elon Musk as “pure fiction”.) CNBC reports that Perplexity hopes to overcome those reservations by proposing a merger rather than a sale.
TechCrunch has reached out to TikTok and Perplexity AI for comment.
