TikTok Live: Perplexity AI Offers US 50% Stake

In a bid to salvage the proposed merger with TikTok parent ByteDance, Perplexity AI has revised its offer, proposing a new US holding company, "NewCo", where the US government would own up to 50% of the entity upon a future IPO. This move aims to address concerns surrounding TikTok's presence in the US, as the app faces a looming market ban following President Trump's executive order.

The revised deal would create a new entity combining Perplexity AI and TikTok US, minus its core algorithm, in exchange for equity in the new company. Perplexity AI would contribute itself to the new company, providing growth capital and a dividend payment to ByteDance investors. The US government's stake could reach up to 50% if the new company IPOs at $300 billion, aligning with President Trump's goals for the government to benefit from a TikTok deal.

As the fate of TikTok hangs in the balance, brands and marketers are taking proactive steps to adapt to the potential loss of the platform. Many are diversifying their presence across platforms like Instagram Reels, YouTube Shorts, and LinkedIn, while others are exploring emerging platforms like Red Note. Experts emphasize the importance of building relationships across multiple platforms, citing the unpredictability of the social media landscape.

The proposed deal has significant implications for the social media landscape, with the absence of TikTok's algorithm potentially requiring brands and creators to think beyond the platform and develop a long-term strategy to maintain visibility and engagement. Whether Perplexity AI can salvage the deal or alternative acquirers like Oracle emerge, marketers will need to adapt and innovate to stay ahead in the ever-changing social media landscape.

As negotiations between TikTok and the Trump administration continue, the outcome remains uncertain. One thing is clear, however: the future of TikTok in the US will have far-reaching implications for the social media landscape, and brands and marketers must be prepared to adapt to the changing landscape, with or without TikTok, and consider alternative platforms, such as TikTok live, to reach their audiences.