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    Perplexity AI Proposes Merger with TikTok, Offering U.S. Government 50% Stake in $300 Billion IPO Without Voting Rights

    Perplexity AI Proposes Merger with TikTok, Offering U.S. Government 50% Stake in $300 Billion IPO Without Voting Rights

    29 postsTrump PolicyPolicyPoliticsTech

    Perplexity AI, based in San Francisco, has revised its merger proposal with TikTok's parent company, ByteDance, to include a provision that would allow the U.S. government to own up to 50% of a new entity formed by merging Perplexity AI with TikTok's U.S. business. This revised proposal, submitted last week, follows feedback from the Trump administration and is designed to create a new structure valued at least at $300 billion upon an initial public offering. The government's shares in this new entity would not carry voting rights nor grant a board seat. ByteDance would contribute TikTok's U.S. operations, excluding its proprietary algorithm, while its existing investors would retain their equity stakes. The proposal aims to satisfy U.S. regulatory concerns about TikTok's ownership structure, which led to a temporary ban of the app in the U.S. last week, subsequently lifted by an executive order from President Trump. Under the plan, ByteDance would not have to completely cut ties with TikTok but would have to allow full U.S. board control. The proposal mirrors a strategy suggested by former Treasury Secretary Steven Mnuchin, who has expressed interest in investing in TikTok. President Trump has indicated that a decision on TikTok's future in the U.S. could be made within 30 days, following discussions with various investors, including Oracle CEO Larry Ellison. The temporary ban was halted for 75 days, and Trump has credited TikTok with helping him win more young voters in the last election. TikTok CEO Shou Chew attended Trump's inauguration, signaling ongoing engagement with the new administration.

    Proposed Market

    Will TikTok be banned in the U.S. again by April 10, 2025?

    Will TikTok be banned in the U.S. again by April 10, 2025?

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    San FranciscoTikTokByteDancePerplexity AILarry EllisonShou ChewOracleTrumpSteven Mnuchin

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    Official announcements or executive orders from the U.S. government

    Market Options

    Yes50%
    No50%