Perplexity AI proposes TikTok merger with 50% ownership for US government

[DragonSlayer101]

In context: Artificial intelligence startup Perplexity AI recently proposed a merger with ByteDance's TikTok US operations. As part of a revised plan, the company has offered to allocate up to 50 percent of the combined entity to the US government.

The revised plan reportedly includes provisions for the US government to receive stock in the new company once Perplexity AI achieves an initial public offering valued at a minimum of $300 billion. However, these would be non-voting shares, meaning the US government would hold 50 percent ownership of the company but have no influence over TikTok's day-to-day operations. Additionally, the government would not be granted a seat on the merged entity's board.

According to a source quoted by Reuters, the proposed holding company would be tentatively named "NewCo" and include investments from TikTok's current stakeholders. Perplexity AI has also expressed willingness to be acquired by the holding company, provided its investors receive a share of NewCo's equity.

The revised plan comes just over a week after Perplexity AI submitted its initial merger proposal, which ByteDance did not respond to. Reportedly, the updates to the plan were made following feedback from the Trump administration. However, even if the offer is accepted this time, the merged entity will not gain access to ByteDance's prized recommendation algorithm, widely regarded as the key to TikTok's meteoric rise as a social media phenomenon.

Perplexity AI is far from the only party interested in taking over TikTok. On Saturday, Donald Trump claimed that "numerous people" had expressed interest in investing in the company. However, he denied discussing the matter with Oracle CEO and close ally Larry Ellison. Both Oracle and Microsoft are reportedly in talks to negotiate a TikTok acquisition in a deal that could allow ByteDance to retain a minority stake in the app.

TikTok briefly went dark in the US on January 19 after the Supreme Court upheld a bipartisan law requiring ByteDance to sell the app to an American entity by the same date or face a nationwide ban. The following day, Trump took office and issued an executive order reversing the ban, granting TikTok an additional 75 days to sever ties with its Chinese parent company.

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Perplexity AI proposes TikTok merger with 50% ownership for US government

 

[wiyosaya]

Is this company actually making a LLM AI?

If so, I can see why they would want to buy TikTok - I'm sure they would love to train their AI from TikTok posts.

 

[ScottSoapbox]

Why would anyone want the US government to own half of TikTok?

I feel like I'm taking crazy pills.

 

[Dreadcthulhu]

Why would anyone want the US government to own half of TikTok?

I feel like I'm taking crazy pills.

I am not a fan of the US gov owning or influencing websites like TikTok either, but the US government has worked itself into a mess. Tik Tok is very popular among young voters (and those who will be able to vote next election), and the new administration has realized that (heck, maybe Barron Trump is flat out told his father how popular it is and got him to change his mind, lol) and does not want to sour those young voters/future voters on Republicans in the future over something so petty. So keeping Tik Tok operation one way or the other is very appealing to the current administration (while also pointing out repeatedly that the prior guy was the one who signed a law to ban it), though hopefully if the US government does take half ownership it is able to sell it off with all due haste.

 

[captaincranky]

If this is the alternative, I'm all in favor of letting the Chinese keep it.

Having the president, (not mentioning any names), lording over the content on Tik-tok, is the worst outcome possible.

 

[RudyBob]

Our "government" should have NO Tik tok ownership

 

[Greggs]

I am not a fan of the US gov owning or influencing websites like TikTok either, but the US government has worked itself into a mess. Tik Tok is very popular among young voters (and those who will be able to vote next election), and the new administration has realized that (heck, maybe Barron Trump is flat out told his father how popular it is and got him to change his mind, lol) and does not want to sour those young voters/future voters on Republicans in the future over something so petty. So keeping Tik Tok operation one way or the other is very appealing to the current administration (while also pointing out repeatedly that the prior guy was the one who signed a law to ban it), though hopefully if the US government does take half ownership it is able to sell it off with all due haste.

The part that doesn't make sense is there's no problem with interested buyers or raising the capital required to purchase the company. The issue is the willingness of the seller to accept an offer. The US government getting a 50% financial stake doesn't make the deal more likely which is why it's a bizarre idea, besides considering the US government doesn't typically keep ownership of for profit enterprises.

 

[ZedRM]

This is just what we need. TikTok owned by another government. Not sure which is worse, the Chinese gov owning a stake or the US gov. Ideas like this are why AI should not be trusted.

 

[airbornex]

The idea of the US government owning 50% of TikTok through non-voting shares is peak modern geopolitics. It’s like a Cold War proxy battle, but instead of missiles, they’re fighting over viral dances and AI-powered recommendations.

 

[captaincranky]

So keeping Tik Tok operation one way or the other is very appealing to the current administration (while also pointing out repeatedly that the prior guy was the one who signed a law to ban it), though hopefully if the US government does take half ownership it is able to sell it off with all due haste.

Would that be before, or after, the current administration packs the board of director with its own stooges?

 

[AnilD]

The fact that ByteDance won’t part with the algorithm says everything about how valuable it is.

 

[lonetac]

Why would anyone want the US government to own half of TikTok?

I feel like I'm taking crazy pills.

Two reasons primarily:
1. They want money. They get no cuts from Tiktok like they do with their insider trading with meta, x and others.
2. Control. Its the only social media app the US cant censor what news comes your way. The government is very upset that tiktok helped expose how Israel was treating palestinians and they lost their crap about it and are very upset. If they own some, they can now start censoring you like they do with meta and x.

 

[lonetac]

Our "government" should have NO Tik tok ownership

I dont agree with you often but here we are aligned 100%.

 

[lonetac]

Would that be before, or after, the current administration packs the board of director with its own stooges?

its interesting because Trump started the ban when he signed the removal of it from app stores in his last administration.

Then the dems moved forward and actually signed the ban.

Now full circle, Trump will likely save it and making himself the hero for a problem that he originally started.

Both parties worked against over 160 million americans and like 6 million businesses operating on it contributing billions of revenue to the economy.

What fascinates me is how quickly they came together to put this ban in place yet get those clowns to pass any legislature that helps americans in a bi-partisan manner and it would never happen.

Lets also not forget that the sponsor of the ban bill owns the highest amount of stock shares in Meta than anyone else in congress despite 27 others also owning stock. Meta certainly stands to gain a lot of market share if tiktok gets banned.

Coincidence? You decide.

 

[Squid Surprise]

Why would anyone want the US government to own half of TikTok?

I feel like I'm taking crazy pills.

They would own 50% yet not have any voting shares - aka no control... but entitled to 50% of the profits...
So.... this is basically a very large bribe: the government gets half the profits in exchange for looking the other way... got to love how business is done nowadays

 

[loki1944]

Screw that; no thanks Chicom A.
I.

 

[ScottSoapbox]

Two reasons primarily:
1. They want money. They get no cuts from Tiktok like they do with their insider trading with meta, x and others.
2. Control. Its the only social media app the US cant censor what news comes your way. The government is very upset that tiktok helped expose how Israel was treating palestinians and they lost their crap about it and are very upset. If they own some, they can now start censoring you like they do with meta and x.

Yes, I meant: Why would anyone other than the US government want the US government to own half of TikTok?

I thought that unstated bit was obvious. Why would citizens, users, or the new owners/execs want government ownership?

 

[lonetac]

Yes, I meant: Why would anyone other than the US government want the US government to own half of TikTok?

I thought that unstated bit was obvious. Why would citizens, users, or the new owners/execs want government ownership?

because they have no idea what is being done and why without putting any effort into understanding whats going on.

Folks just want to stick it the CCP and are blinded by nothing more than that. So they see the US government owning as more favorable than a foreign entity. Would it be so hard to understand that? Whether its legit or not, its logical that folks would be against China's government (despite them not owning tiktok) having ownership of it and in favor of the US.

That would allow investors to likely buy stocks and now congress can get rich off of tiktok next with their inside trading like they do with Meta and X. They can then censor everything as well just like they do on Meta and X.

Tiktok won capitalism and now the gov is panicking about what to do cause they are not in control.

From my discussions with individuals who are in favor of the tiktok ban, its literally as simple as "Screw the libs", "Screw the CCP". Nothing else matters. In fact one person said he doesnt care if Zuck gets richer because of the ban, he wants it banned because CCP.

I dont think we need to go too deep, folks are pretty simple in their views here.