The search engine platform Perplexity AI submitted a bid to merge with TikTok on Saturday, a source familiar told The Hill. The move follows a Friday Supreme Court ruling that upheld the decision to enforce a ban on TikTok due to national security risks.
Under the proposed deal, Perplexity, TikTok U.S. and new capital partners would combine, according to CNBC who first reported the news. It would also allow for TikTok’s stakeholders to remain invested in the platform, as reported by the outlet which said sources believe bids for the company should start “well north of $50 billion.”
The merger would offer more available video content for Perplexity which would help improve responses generated from artificial intelligence (AI), transforming the possibility for the app’s future use.
TikTok has already promised users it would “create unique, transformative, and year-defining content” in their What’s Next Report for 2025, projecting spikes in business deals on the app.
Potential owners include billionaire businessmen Frank McCourt, Steven Mnuchin and Kevin O’Leary, who have recently said they would buy the platform, although Tik Tok CEO Shou Chew said the company would not sell to a U.S. owner.
The TikTok ban is set to go into place Sunday, although the Biden administration said it would not enforce the ban and will instead punt the enforcement to the Trump administration. Trump suggested Saturday that he’s likely to give TikTok a 90-day extension once he takes office.
