Reuters reports that American AI startup Perplexity has reviewed ByteDance, TikTok’s Chinese owner's proposal to merge and create a new company.
According to the media outlet, the US government plans to own up to 50% of the new company's shares.
The document submitted by Perplexity to ByteDance and new investors proposes the creation of a new US holding company called “NewCo.”
It is believed that ByteDance will not have to exit TikTok completely. Instead, American management will manage the company’s activities in the US. However, ByteDance will not transfer TikTok’s central algorithm, the system that selects the content shown to users.
