TikTok Faces US Ban if it Doesn’t Cut Ties with Parent Company ByteDance
Perplexity AI Submits Bid to Merge with TikTok US
Washington: US search engine startup Perplexity AI has submitted a bid to merge with TikTok’s Chinese parent company, ByteDance, a source familiar with the company’s plans told Reuters. This move comes as TikTok faces a US ban starting on Sunday if it does not cut ties with ByteDance.
Trump’s 90-Day Reprieve
President-elect Donald Trump said on Saturday that he would likely give TikTok a 90-day reprieve on Monday, according to reports. However, the ban will still go into effect on Sunday if TikTok does not meet the US government’s demands.
Perplexity’s Proposal
Perplexity’s proposal involves merging with TikTok US and creating a new entity by combining the merged company with other partners, according to the source. This new structure would allow most of ByteDance’s existing investors to retain their equity stakes and would bring more video content to Perplexity.
New Structure
The new structure proposed by Perplexity would allow for most of ByteDance’s existing investors to retain their equity stakes and would bring more video content to Perplexity, the source said, requesting anonymity because the matter is confidential.
TikTok’s Response
TikTok did not immediately respond to requests for comment.
Perplexity’s Advantages
Perplexity AI believes its bid may succeed since the proposal is a merger rather than a sale, the person said. Perplexity’s search tools enable users to get fast answers to questions, with sources and citations. It is powered by large language models that can sum up and generate information, from OpenAI to Meta Platforms’ open-source model Llama.
TikTok’s Position
TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, said on Friday it will go dark in the US on Sunday unless President Joe Biden’s administration provides assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect.
Conclusion
The fate of TikTok in the US hangs in the balance as the company faces a ban if it does not meet the US government’s demands. Perplexity AI’s proposal offers a potential solution, but it remains to be seen if it will be accepted. One thing is certain, however – the world will be watching to see how this situation unfolds.
FAQs
* What is Perplexity AI?
Perplexity AI is a US search engine startup that uses large language models to provide fast answers to questions with sources and citations.
* What is the proposal?
The proposal involves merging with TikTok US and creating a new entity by combining the merged company with other partners.
* What are the benefits of the proposal?
The proposal would allow most of ByteDance’s existing investors to retain their equity stakes and would bring more video content to Perplexity.
* Will TikTok go dark in the US?
Yes, TikTok will go dark in the US on Sunday unless President Joe Biden’s administration provides assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect.