Perplexity AI proposes TikTok merger with 50% US stake

ByteDance plans to sell TikTok U.S. operations to a group of investors who will receive NewCo equity alongside current TikTok stakeholders. The core TikTok recommendation algorithm will stay with ByteDance as part of the agreement.

According to Reuters, The U.S. government would gain up to 50% ownership of NewCo after an IPO providing the company reaches a minimum $300 billion valuation. Perplexity AI has suggested NewCo should acquire their company to provide equity ownership to investors.

The U.S. saw TikTok services return last week after President Donald Trump announced the app’s operations could resume. American law raised national security concerns which led TikTok to stop its U.S. services.

Trump announced that parties negotiating TikTok’s future will reach a verdict within thirty days. The White House and ByteDance have declined to provide statements about the proposal. The first to reveal this compelling development was CNBC.

The new proposal represents a major transformation for TikTok’s American operations by addressing both security concerns and maintaining user engagement. Both investors and users follow the ongoing story with keen interest.

[cryptotimes]