Perplexity AI revises TikTok merger bid, offers US government 50% stake

Perplexity AI has submitted a revised merger proposal to TikTok's parent company, ByteDance, which would allow the U.S. government to acquire up to 50% ownership of the new entity formed from the merger. This updated bid comes in response to feedback from President Trump's administration and follows a previous proposal that ByteDance had not responded to. Under the new terms, the U.S. government's stake would be acquired after an initial public offering of at least $300 million, but it would not have voting rights or a seat on the board. TikTok's operations would continue under this arrangement, allowing ByteDance to retain some ownership without its proprietary algorithm. The proposal aims to address national security concerns related to TikTok's Chinese ownership while ensuring existing investors benefit from the new structure. Discussions are also ongoing regarding Oracle potentially taking control of TikTok's U.S. operations.