A day before TikTok was scheduled to shut down in the US, startup Perplexity AI submitted a bid to TikTok’s parent company ByteDance proposing a merger that would allow it to continue operating, CNBC reported. Citing anonymous sources, CNBC reported that the proposed merger would “create a new entity combining Perplexity, TikTok US, and New Capital Partners.” This comes after the Supreme Court ruled unanimously on Friday to uphold a law requiring ByteDance to sell TikTok, which would otherwise be banned in the United States. The company has so far resisted the idea of a sale.
According to CNBC sources, Perplexity, which offers an AI-powered search engine and is currently being sued by news organizations for copyright infringement, is more attractive to ByteDance in a merger than in a sale. He says he hopes it will be. “The new structure will allow most of ByteDance’s existing investors to keep their shares and provide more video to Perplexity,” CNBC reported. If ByteDance accepts the offer, Trump could give him a 90-day extension to finalize the deal, which he told NBC News’ Kristen Welker he would “probably” do when he takes office. spoke. Monday. However, there is no indication yet that ByteDance will go down this path.
Despite rampant speculation about a potential buyer, TikTok will continue to sell unless the “Biden Administration immediately provides a definitive statement that satisfies the most critical service providers that guarantee non-compliance with law enforcement.” If the law goes into effect, “we will be forced to suspend services on January 19th,” he said. However, the outgoing administration has reportedly said it will leave all responses to the Trump team. According to MSNBC, White House press secretary Karine Jean-Pierre called the claims about TikTok’s shutdown a “stunt” and said, “There is no reason for TikTok and other companies to take action in the days leading up to the Trump administration’s inauguration on Monday. I can’t find it,” he said. ”
“We have stated our position clearly and openly, and it will be up to the next administration to take action to implement this law,” Jean-Pierre said, according to MSNBC. “So TikTok and other companies should take any concerns on board.”
