Just a day before TikTok is expected to shut down in the US, startup Perplexity AI filed a bid with TikTok's parent company ByteDance, proposing a merger that would allow it to continue operating. CNBC reports. Citing an anonymous source, CNBC reports that the proposed merger “will create a new organization combining Perplexity, TikTok US and New Capital Partners.” This happens after The Supreme Court unanimously ruled Friday to uphold the law. this requires ByteDance to sell TikTok or it will be banned in the US. The company has so far resisted the idea of selling.
According to CNBCSource Perplexity, which currently offers an AI-powered search engine and he was sued by news organizations for copyright infringement – hopes that a merger rather than a sale will be more attractive to ByteDance. “The new structure will allow the majority of ByteDance's existing investors to retain their equity stakes and will bring more video to Perplexity,” CNBC reports. If ByteDance accepts the offer, there is a chance Trump will grant the company a 90-day extension to work out the deal, as he has said. NBC NewsKristen Welker on what he's “likely” to do when he takes office on Monday. But there are no signs that ByteDance will go down this path.
Despite rampant speculation about potential buyers, Tik Tok said it “will be disabled on January 19” when the law takes effect, unless “the Biden administration immediately provides a final statement to satisfy critical service providers, ensuring non-compliance.” However, the outgoing administration reportedly says it is leaving all this up to Trump's team. Per MSNBCWhite House press secretary Karine Jean-Pierre called TikTok's announcement to shut down a “stunt” and said that “we see no reason for TikTok or other companies to take action in the next few days before the Trump administration takes office on Monday.”
“We have made our position clear and straightforward: the implementation of this law will be the responsibility of the next administration,” Jean-Pierre said, according to the report. MSNBC. “Therefore, TikTok and other companies should discuss any concerns with them.”