Perplexity AI proposes TikTok merger with 50% U.S. government ownership stake
Confused AI makes a new suggestion TikTokThe company’s parent company will own 50% of the new entity combined with Tiktok’s U.S. operations, a person familiar with the matter said.
The proposal, presented last week, is a revision of a previous plan the artificial intelligence startup sent to Tiktok parents on January 18, the day before the law banning Tiktok went into effect.
The first proposal, which has yet to be responded to, seeks to create a new structure that would combine San Francisco-based Puzzle with Tiktok’s U.S. operations and include investment from other investors.
The new proposal would see the U.S. government offer at least $300 billion in an initial public offering for the first time, said the person, who was not authorized to speak about the proposal. The person said the confused offer was based on a request from Trump administration.
If the plan succeeds, the government-owned shares will have no voting rights, the person said. The government will also not have a seat on the new company’s board of directors.
Bytedance and Tiktok did not immediately respond to requests for comment.
Under the plan, Bytedance would not have to completely cut ties with Tiktok, a favorable outcome for its investors. But that would have to allow for “all-American board control,” the person said.
Under the proposal, the China-based tech company would contribute to Tiktok’s U.S. operations without a proprietary algorithm that burned, according to a filing from The Associated Press. What users see on the app.
The proposal appears to mirror what Steven Mnuchin, President Donald Trump’s Treasury secretary during the first term, discussed on Fox News’ Sunday Morning Futures, TikTok The new investors could simply “dilute” the Chinese ownership and satisfy the law. Mnuchin has previously expressed interest in investing in the company.
“But this technology needs to be disconnected from China,” he added. “It needs to be disconnected from Orcs. China will never let us have anything like that in China.”
Confusing proposal comes as several investors express Interest in Tiktok. Mr. Trump said late on Saturday that he expected a deal to be reached within 30 days.
exist Airline flights from Las Vegas to MiamiMr. Trump also said, although he had not discussed it with Larry Ellison, chief executive of software maker Oracle Report That Oracle, as well as outside investors, are considering taking over Tiktok’s global operations.
“A lot of people are talking to me. Very substantive people,” Trump said. “We’re very interested in this and the United States will be a huge beneficiary. … I will only be interested if the United States benefits.” Do this.”
Under the bipartisan law passed last year, food without a connection to Savage would be banned in the U.S. by January 19. The Supreme Court upheld the law, but Mr. Trump later issued an executive order blocking its enforcement for 75 days.
Mr Trump noted on the Air Force One that Ellison lives “down the road” from his Mar-A-Lago estate, but added: “I’ve never talked to Larry about Tiktok. Tiktok is very interesting.”
tiktok briefly shut down In the United States a week ago, the ban came back online after Mr Trump said he would delay the ban. Mr Trump unsuccessfully tried to ban the platform during his first term. But he has since reversed his stance and credits the platform with helping him win over more young voters in last year’s presidential election.
Tiktok CEO Shou Chew attended Mr Trump’s inauguration January 20, and a few others technology leader who has been on friendly terms with the new government.
Congress voted to ban Tiktok in the United States over concerns that its ownership structure represented a security risk. The Biden administration has argued in court that algorithms that allow Chinese companies to control what people see on apps are too many risks. Officials also raised concerns about user data collected on the platform.
However, the United States has so far provided no public evidence that Tiktok handed over user data to Chinese authorities or allowed them to use its algorithm modifications.
