Perplexity AI files merger bid with TikTok US

Search engine platform Perplexity AI submitted a merger offer with TikTok on Saturday, a source familiar with the matter told The Hill. The move follows a Supreme Court ruling on Friday that upheld the decision to impose a ban on TikTok due to national security risks.

Under the proposed deal, Perplexity, TikTok US and new capital partners will be combined, according to CNBC, which first reported the news. It will also allow TikTok stakeholders to continue investing in the platform, as reported by the outlet, which said sources believe bidding for the company should start “well north of $50 billion.”

The integration will make more video content available to Perplexity that will help improve artificial intelligence (AI)-generated responses, transforming the usability of the app in the future.

TikTok has already promised users that it will “create unique, transformative, year-defining content” in its 2025 What’s Next report, predicting a significant spike in commerce deals on the app.

Potential owners include billionaire businessmen Frank McCourt, Steven Mnuchin and Kevin O’Leary, who recently said they would buy the platform, although TikTok CEO Xu Chiu said the company would not sell to an American owner.

The TikTok ban is set to take effect on Sunday, though the Biden administration has said it will not enforce the ban and will instead turn over enforcement to the Trump administration. Trump suggested on Saturday that he would likely give TikTok a 90-day extension once he takes office.