Perplexity AI bids to merge with TikTok’s US operations

ByteDance-owned TikTok faces a potential merger with Perplexity AI following a Supreme Court decision to uphold the platform’s ban in the United States.

Key developments: Perplexity AI, a search engine platform, has submitted a bid to merge with TikTok’s U.S. operations, as the social media giant confronts mounting pressure from regulatory authorities.

• The proposed deal would combine Perplexity, TikTok U.S., and new capital partners
• Initial bids for the company are expected to start above $50 billion
• The merger would provide Perplexity with access to TikTok’s vast video content library to enhance its AI-generated responses

Regulatory context: The Supreme Court’s Friday ruling to uphold TikTok’s ban due to national security concerns has accelerated discussions about the platform’s future in the United States.

• The ban is scheduled to take effect Sunday
• The Biden administration has indicated it will not enforce the ban, deferring enforcement to the incoming Trump administration
• Trump has suggested he may grant TikTok a 90-day extension once he takes office

Potential stakeholders: Several high-profile business figures have expressed interest in acquiring TikTok, though the company’s current leadership remains resistant to U.S. ownership.

• Billionaire businessmen Frank McCourt, Steven Mnuchin, and Kevin O’Leary have publicly expressed interest in purchasing the platform
• The proposed merger structure would allow current TikTok stakeholders to maintain investment in the platform
• TikTok CEO Shou Chew has stated the company would not sell to a U.S. owner

Platform outlook: Despite regulatory uncertainty, TikTok continues to project confidence in its future growth and innovation potential.

• The company’s What’s Next Report for 2025 promises “unique, transformative, and year-defining content”
• TikTok anticipates increased business activity on the platform
• The potential merger with Perplexity AI could represent a significant shift in the platform’s technological capabilities and market position

Strategic implications: The proposed merger represents a complex intersection of technological innovation, national security concerns, and international business dynamics, with the outcome likely to have lasting impacts on both social media and AI development landscapes.