With a TikTok ban looming in the United States, Perplexity AI is the latest bidder hoping to give the video app a new corporate home.
CNBC first reported on 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 bid to merge with TikTok US.
The source also confirmed other details about the bid — that it would create a new entity combining Perplexity, TikTok, and new equity 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 requiring ByteDance to either sell TikTok or see it banned in the US is set to take effect on Sunday, January 19. That will be President Joe Biden’s last day in office, and officials from his administration have said that it will leave the actual implementation of the ban “to the next Administration.”
Meanwhile, President-elect Donald Trump, who will be inaugurated on Monday, said he would “most likely” give TikTok a 90-day extension, and TikTok’s CEO posted a video thanking Trump for his efforts.
However, TikTok said that without more explicit assurances of non-enforcement from the Biden administration, it will be “forced to go dark” on Sunday.
Despite a number of buyers expressing interest in TikTok, ByteDance has said repeatedly that it does not intend to sell. (The company described a report that the Chinese government is open to an acquisition by Elon Musk as “pure fiction.”) CNBC reports that Perplexity is hoping it can overcome those reservations by proposing a merger rather than a sale.
TechCrunch has reached out to TikTok and Perplexity AI for comment.
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