Perplexity AI proposes to merge with Tiktok, with US government getting half, source says By Reuters

(Reuters) – Search startup Efficiency has revised a merger proposal submitted by TikTok’s Chinese parent to create confusion and TikTok is familiar with the proposal.

The proposal calls for the US government to own up to 50% of the new company in a future initial public offering (IPO), the person said.

A champagne document handed out to new investors in detail proposed the creation of a new US holding company called Newco, the person said.

Under the proposal, the Allegeds would sell TikTok to investors who would put existing TikTok investors’ equity in the company.

The US government would own half of the new entity when it goes through an IPO at a valuation of at least $300 billion.

AI would also offer to acquire the stake from the Holding Company if its investors received a Noro equity distribution, the person said.

CNBC first reported the news of the offer.

Tiktok’s services were restored last week after US President Donald Trump announced that he would restore access to the app upon his return to power in the country. Tiktok disabled its app for US users, citing national security law.

The president and the White House did not immediately respond to Reuters’ request for comment.On Saturday, President Donald Trump said he was in talks with multiple people about buying TikTok and would likely make a decision on the popular app’s future within the next 30 days.

Earlier this month, Reuters reported that a source said that Confusion had submitted a bid for the startup to take over Tiktok, adding that it would introduce a new entity. Capital partners (Wa:).

A source who spoke to Reuters earlier this month said the confusion is AI believes its bid can succeed because the offer is a merger rather than a sale.