WASHINGTON (Diya TV) — Perplexity AI has made a new proposal to ByteDance, TikTok’s parent company. The new plan, filed last week, offers to merge with the U.S. business of TikTok in exchange for the U.S. government taking up to 50% ownership in the new company. The plan seeks to assuage national security concerns without forcing ByteDance to cut ties entirely with TikTok.
This appears to serve as an alternative to the other plan proposed in mid-January. That previous plan had not received a response from ByteDance. In this new plan, Perplexity AI would merge with TikTok’s U.S. operations, forming a company set to conduct an initial public offering of at least $300 billion. However, sources familiar with the matter said the U.S. government would not have voting rights or a seat on its board.
If the deal goes through, ByteDance could keep some control of TikTok while ensuring full U.S. board control. This stake would certainly help dilute national security risks, mainly raised by the Chinese ownership of TikTok’s algorithm and user data.
The proposal follows heightened concerns over TikTok’s security risks and a bipartisan law compelling the U.S. business to sever its ties with ByteDance. President Donald Trump has expressed optimism about reaching a deal within 30 days, with several investors, including former Treasury Secretary Steven Mnuchin, indicating an interest in the platform.
