Perplexity AI submits merger offer with TikTok

With TikTok’s US ban looming, Perplexity AI is the latest bidder hoping to give the video app a new headquarters.

CNBC first reported Perplexity’s interest. A source with knowledge of the offer confirmed to TechCrunch that Perplexity (whose CEO Aravind Srinivas is pictured above) has submitted a merger offer with TikTok US.

The source also confirmed other details about the offer: it would create a new entity combining Perplexity, TikTok US and new financial partners; that most investors in TikTok’s parent company, ByteDance, would be able to retain their equity; and that by merging, Perplexity hopes to bring more video to its AI search engine.

A law forcing ByteDance to sell TikTok or see it banned in the United States is set to take effect on Sunday, January 19. It will be President Joe Biden’s last day in office, and officials in his administration have said he will leave office. implementation of the ban “until the next administration.”

Meanwhile, President-elect Donald Trump, who will be inaugurated Monday, said he would “most likely” grant TikTok a 90-day extension, and TikTok’s CEO released a video thanking Trump for his efforts.

However, TikTok said that without more explicit assurances of non-enforcement from the Biden administration, it would be “forced into obscurity” on Sunday.

Despite interest from a number of buyers in TikTok, ByteDance has repeatedly stated that it has no plans to sell. (The company called a report that the Chinese government would be open to an acquisition by Elon Musk “pure fiction.”) CNBC reports that Perplexity hopes it can overcome these reservations by proposing a merger rather than a sale.

TechCrunch has contacted TikTok and Perplexity AI for comment.