Perplexity AI reportedly submitted eleventh-hour bid to save TikTok in the US

Just a day before TikTok’s planned shutdown in the United States, startup Perplexity AI submitted an offer to TikTok’s parent company ByteDance, proposing a merger that would allow it to continue operations, CNBC reports. Citing an anonymous source, CNBC reports that the proposed merger “would create a new entity combining Perplexity, TikTok US and New Capital Partners.” This comes after the Supreme Court ruled unanimously on Friday in favor of a law that requires ByteDance to sell TikTok or it will be banned in the United States. The company has so far resisted the idea of ​​a sale.

According to CNBCThe source from Perplexity, which currently offers an AI-powered search engine and is being sued by news organizations for copyright infringement, hopes that a merger rather than a sale will be more attractive to ByteDance. “The new structure would allow most of ByteDance’s existing investors to retain their stakes and bring more video to Perplexity.” CNBC reports. If ByteDance accepted the proposal, it is possible that Trump would grant the company a 90-day extension to reach a deal, which he has said. NBC News‘ Kristen Welker that he would “most likely” do when he takes office on Monday. But there is no indication yet that ByteDance will take this route.

Despite widespread speculation about potential buyers, TikTok said it “will be forced to shut down on January 19” when the law takes effect unless “the Biden administration immediately provides a definitive statement to satisfy suppliers of the most critical services guaranteeing non-application”. The outgoing administration, however, reportedly said it was leaving all that to the Trump team. By MSNBCWhite House Press Secretary Karine Jean-Pierre called TikTok’s claim about the shutdown “a stunt” and said that “we see no reason for TikTok or other companies to take any action.” measures in the coming days before the Trump administration takes office on Monday.”

“We have stated our position in a clear and direct manner: actions to implement this law will be the responsibility of the next administration,” Jean-Pierre said, according to MSNBC. “TikTok and other companies should therefore raise their concerns.”