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Perplexity AI makes a bid to merge with TikTok U.S.


Perplexity AI submitted a bid on Saturday to TikTok parent ByteDance, proposing that Perplexity merge with TikTok U.S., CNBC has learned.

The new structure would allow for most of ByteDance's existing investors to retain their equity stakes and would bring more video to Perplexity, according to a source familiar with the situation, who asked to remain anonymous due to the confidential nature of the potential deal. Though any potential transaction between Perplexity AI and ByteDance would likely take months to complete — and TikTok has said the app will "go dark" in the U.S. on Sunday unless the Biden administration assures it won't punish Apple, Google and other service providers for hosting it — President-elect Donald Trumptold NBC News on Saturday that he "most likely" would give TikTok 90 more days to work out a deal after he is sworn into office on Monday. ByteDance has publicly implied it will not sell TikTok U.S., which is part of why Perplexity AI believes it has a shot with its bid — since the proposal is a merger rather than a sale, the source told CNBC.

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