Compiled by Frontier Intelligence

According to various overseas media outlets, including CNBC, Perplexity AI, a pioneering search engine company, has recently submitted a merger proposal to ByteDance, aiming to integrate with TikTok's operations in the United States. This initiative, as per industry insiders, envisions the creation of a new entity that would encompass Perplexity AI, TikTok's US business, and new capital partners.

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A notable feature of this merger plan is that it allows the majority of ByteDance's existing investors to retain their equity while also augmenting Perplexity AI's video content resources. Currently, Perplexity AI is valued at approximately $9 billion, whereas TikTok's US business holds an estimated worth of between $40 billion and $50 billion.

Amid the US government's mandate for ByteDance to sell TikTok's US operations, Perplexity AI believes that proposing a merger, rather than an outright acquisition, might increase the likelihood of securing ByteDance's approval. Industry insiders suggest that the final transaction price will partly hinge on whether ByteDance's current shareholders opt to remain invested in the new entity or seek liquidity by cashing out.

On January 19, Beijing time, TikTok temporarily ceased its services in the US. Although it began gradually restoring these services the following day, TikTok continues to face the specter of a potential ban in the United States.