A New Bid for TikTok from Perplexity AI Would Give the US Government a 50% Stake

An anonymous reader shared this report from the Associated Press:

Perplexity AI has presented a new proposal to TikTok's parent company that would allow the U.S. government to own up to 50% of a new entity that merges Perplexity with TikTok's U.S. business, according to a person familiar with the matter... The new proposal would allow the U.S. government to own up to half of that new structure once it makes an initial public offering of at least $300 billion, said the person, who was not authorized to speak about the proposal. The person said Perplexity's proposal was revised based off of feedback from the Trump administration. If the plan is successful, the shares owned by the government would not have voting power, the person said. The government also would not get a seat on the new company's board.

Under the plan, ByteDance would not have to completely cut ties with TikTok, a favorable outcome for its investors. But it would have to allow a 'full U.S. board control,' the person said.

Under the proposal, the China-based tech company would contribute TikTok's U.S. business without the proprietary algorithm that fuels what users see on the app, according to a document seen by the Associated Press.

Read more of this story at Slashdot.