The media published information according to which the search engine startup Perplexity AI has revised its plans to merge with TikTok.
The journalists, citing insiders who are aware of the intentions of the mentioned startup, claim that as part of the new proposal submitted to TikTok’s owner ByteDance, the United States government, will own up to half of the combined company upon a future initial public offering (IPO) of shares.
The interlocutors of the media representatives also stated that the document, which Perplexity AI shared with ByteDance and new investors, floated the establishment of a new US holding company dubbed NewCo.
The mentioned proposal is an updated version of one submitted in the current month. In this case, it implies a call for ByteDance to sell TikTok US to investors. According to media reports, referring to insiders, as part of the specified proposal, existing investors should receive the equity in TikTok. Also, in this case, ByteDance will keep the core recommendation algorithm on the mentioned digital platform.
The United States government will own up to 50% of the combined organization following an IPO of a valuation of at least $300 billion.
The media, citing insiders, reported that Perplexity AI could also be acquired by a holding company if its investors got a portion of the NewCo equity.
The latest deal comes as the United States government and Bytedance continue to work on an agreement that would allow TikTok to keep functioning in the US.
Last year, Congress passed a law requiring China-based ByteDance to abandon the popular video-sharing app due to national security concerns. The mentioned company had to sell TikTok by January 19th. After the specified deadline expired, the app briefly went dark in the United States. A few hours later, TikTok’s operation was restored when US President Donald Trump promised to lift the ban on the app the day before his inauguration.
Last week, Mr. Trump announced that the deal related to further operation of the mentioned digital platform could be concluded within 30 days. Speaking to media representatives, the US president noted that he was negotiating with several potential buyers on the relevant issue. According to him, there is great interest in TikTok.
Sandie Hawkins, former head of TikTok’s US eCommerce division and now president of Teikametrics, stated during a conversation with media representatives that if a certain company is not on the marketplace, then the corresponding brand does not exist for people who shop on this digital platform. She also compared marketplaces to virtual malls, where visibility on its own can fuel sales.
It is worth noting that social commerce platforms have recently changed the way brands interact with potential customers. The virtual environment is becoming more convenient for shopping and more functional in terms of the relevant processes performed by consumers. Sandie Hawkins said that the principle of operating social commerce platforms is similar to the experience in which a person knows from friends about the advantages of a certain item and begins to want to buy it.
As we have reported earlier, TikTok and GoTo Announce Partnership in Indonesia.
