Could the U.S. government end up owning half of TikTok? If the latest version of one revised bid goes through, it will become a real possibility.
Outlets including Reuters and The Hill report that Perplexity AI, a U.S.-based search engine startup, is offering TikTok’s Chinese parent company ByteDance a proposal for a merger between Perplexity and TikTok U.S.
Adding the 50% option lines the deal up with President Donald Trump’s stated goal of ensuring the U.S. has a 50% stake in the app.
The Hill reports that the U.S. government would not have voting power or any seats on the company’s board. This would limit its ability to exert control over the app.
Unlike other bids to purchase TikTok, this offer would still allow existing investors to hold a stake in the company.
Under the terms of Perplexity’s offer, the new company would go public with an initial public offering of at least $300 billion. In that plan, the U.S. government could control up to 50% of the company or less if it chooses to do so. Reuters reports that Chinese owner ByteDance would keep TikTok’s recommendation technology if the sale went through as drafted.
It’s the latest offer in an increasingly crowded market of buyers.
Investor and pro sports team owner Frank McCourt has a bid alongside Kevin O’Leary, a judge from the business-themed reality TV show “Shark Tank.”
Another offer came last week from Jesse Tinsley, founder of the payroll management website employer.com. Tinsley joined up with top internet personality Jimmy Donaldson, whose MrBeast page is the most subscribed-to channel on YouTube.
President Trump said Tuesday, Jan. 21, that he would like Oracle founder Larry Ellison, who reached a previous deal with TikTok in 2020 to help it avoid a ban, to join in with an offer.
Trump also said he would be open to his close political ally Elon Musk, who owns the social media platform X, buying TikTok as well.
President Trump’s action on Jan. 20 halted enforcement of the U.S. ban for 75 days. It gives the app roughly two more months to figure out its future in the U.S.
