Perplexity AI bids to merge with TikTok as high-profile figures, including Elon Musk, MrBeast, and Kevin O’Leary, express interest in acquiring the platform amid a U.S. ban. TikTok’s estimated value is $40-100 billion. Recent efforts to buy TikTok have included attempts by Microsoft, Oracle, and Walmart.
Key Highlights
– AI search engine startup Perplexity AI bids to merge with TikTok.
– Elon Musk and MrBeast show interest in purchasing TikTok.
– Kevin O’Leary proposes a $20 billion offer backed by Project Liberty.
– Numerous high-profile individuals and companies seeking to buy TikTok since the U.S. ban.
– Valuation of TikTok estimated at $40 to $100 billion.
Perplexity AI’s Bid
Perplexity AI has reportedly submitted a proposal to merge with TikTok and New Capital Partners. This arrangement could allow most investors of ByteDance to maintain their equity stakes, according to a source familiar with the situation.
Interest from Elon Musk and MrBeast
Sources indicate that Chinese officials have considered selling TikTok’s U.S. operations to Elon Musk amid discussions on U.S.-China relations. Additionally, YouTuber MrBeast, also known as Jimmy Donaldson, expressed his intent to purchase TikTok to prevent its ban, stating he garnered support from several billionaires to attempt this acquisition.
Kevin O’Leary’s Proposal
Billionaire Frank McCourt’s Project Liberty submitted a proposal backed by Kevin O’Leary to acquire TikTok’s U.S. assets. O’Leary stated he has offered a significant sum of $20 billion to support the purchase and mentioned that the law upheld by the Supreme Court allows the app’s sale to an American entity.
Potential Purchasers
Former TikTok employee suggested that Amazon is a contender for acquiring the app due to its advertising relationship with TikTok. Additionally, Rumble, the video platform, expressed interest in forming a consortium to buy the app.
Activision Blizzard and TikTok
Bobby Kotick, former CEO of Activision Blizzard, has reportedly discussed financing a potential purchase of TikTok with Sam Altman, CEO of OpenAI, though no public comments have been made on the matter.
Mnuchin’s Interest
Former Treasury Secretary Steve Mnuchin revealed plans to assemble a group to buy TikTok, reaching out to various tech companies regarding the acquisition and potential reworking of TikTok’s algorithm, which ByteDance claims would not be part of any sale.
TikTok’s Ban
Recent developments have led to a nationwide ban of TikTok in the United States. The platform ceased operation for U.S. users just prior to the implementation of this ban.
Past Acquisition Efforts
Microsoft attempted to acquire TikTok in August 2020, a deal that nearly closed but ultimately fell through. Oracle and Walmart reached an agreement to buy TikTok in September 2020, which also failed after intervention by the Biden administration.
Valuation Insights
Dan Ives from Wedbush Securities assessed TikTok’s worth at approximately $100 billion, which includes the algorithm. According to Ives, ByteDance could anticipate offers ranging from $40 billion to $50 billion for TikTok’s U.S. operations.
Legislative Background
President Biden enacted a law in April 2024 imposing a nationwide TikTok ban unless ByteDance divested the app. Concerns about TikTok’s ties to China have fielded intense scrutiny, with allegations surrounding user data mishandling and espionage, which TikTok and ByteDance have denied.
In conclusion, the landscape surrounding the potential acquisition of TikTok has attracted significant interest from various high-profile individuals and companies due to the recent U.S. ban on the platform. Notable figures such as Elon Musk and MrBeast are reportedly looking to buy the social media app, while projects from investors like Kevin O’Leary hold promise for reshaping TikTok’s operational model within the U.S. market. With valuations between $40 billion and $100 billion, the stakes remain high in navigating these developments.
Original Source: www.forbes.com
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