Perplexity AI Revises Merger Plan with ByteDance

The US search engine startup Perplexity AI has made changes to the merger proposal it sent to ByteDance, the Chinese parent company of TikTok, to form a new company that would combine Perplexity and TikTok US.

The plan calls for the US government to acquire up to 50% of the new business at a future initial public offering (IPO).

The insider stated that a new US holding company named “NewCo” was suggested in a Perplexity paper that was distributed to ByteDance and potential investors.

Following US President Donald Trump’s announcement last week that he would restore TikTok’s access in the nation once he regained power, the app’s services were resumed.

Due to a law citing national security, TikTok blocked its app for users in the United States.

Trump stated that he was in discussions with several parties about purchasing TikTok and would probably make a decision regarding the future of the well-known app within the next 30 days.

Perplexity bid on ByteDance’s merger with TikTok US, stating that it would merge with TikTok and form a new firm by joining forces with New Capital Partners.

Perplexity AI thinks its bid would be successful because the plan is a merger rather than a sale.

The Economic Times