Perplexity Just Put In A New Bid For TikTok

If TikTok is hoping to keep itself operational following the 75-day extension that US President Donald Trump gave it, it will have to find itself a new owner. Some names have been tossed around as potential buyers, including Elon Musk. But now a new report suggests that Perplexity might have put in a new bid to buy TikTok.

Perplexity’s previous bid

This is not the first time that Perplexity has expressed its interest in acquiring TikTok. Just a little over a week ago, Perplexity put in its first bid to buy TikTok. However, a new report from AP revealed that the company revised its bid following Trump’s feedback.
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Perplexity had proposed that it would create a new company following the acquisition in its previous bid. This new company will combine Perplexity, TikTok US, and other equity investors. After forming the new company, it plans to launch an initial public offering that gives the US government a 50% stake. It will also allow ByteDance to retain its ownership in TikTok.

This is a more diplomatic approach instead of buying TikTok’s operations outright. This could result in a smoother transaction, although we imagine that there are still quite a number of obstacles ahead.

Not so easy

Despite this more diplomatic approach, Perplexity’s bid faces obstacles. For starters, the Chinese government has voiced its opposition to the sale of TikTok’s operations. Keep in mind that China’s government enacted new export restrictions on what it deems to be “core” technologies. The country’s government believes that TikTok’s algorithm falls in that category, which could complicate the sale.

However, there are some who are optimistic that TikTok will make it through without having to sell itself. ByteDance board member William E. Ford was quoted as saying, “I’m optimistic about the dialog that is emerging between President Trump and President Xi. That might help create a much more constructive environment, a much higher level of engagement that could lead to a positive solution.”

Trump had recently granted TikTok a 75-day extension to secure a deal that satisfies US national security requirements.

There are concerns that TikTok being owned by a Chinese company could send potentially sensitive user data back to China. While TikTok isn’t the only foreign company to operate on US soil, the ongoing tensions between the US and China have resulted in the company turning into an unwitting pawn in these political games.