ANKARA

Perplexity AI has submitted a revised proposal to TikTok's parent company, ByteDance, for a merger with TikTok's US operations, allowing the US government to acquire up to 50% ownership in a new entity, according to media reports.

The updated plan, sent last week, builds on a proposal made on Jan. 18, just before TikTok was officially banned under a bipartisan law, CBS News reported on Sunday.

ByteDance has yet to respond to the original proposal, which sought to merge Perplexity with TikTok's US operations while securing investments from other parties.

Under the new plan, the US government would acquire its stake during the entity's initial public offering, which could be valued at $300 billion or more. However, the shares would not come with voting rights or a seat on the company’s board, the broadcaster reported, citing a source familiar with the matter.

The proposal also ensures ByteDance retains its ties to TikTok but requires "full US board control."

TikTok’s US operations would exclude the proprietary algorithm that personalizes user content.

The plan reflects strategies previously suggested by former Treasury Secretary Steven Mnuchin, who emphasized separating TikTok’s technology from Chinese ownership.

Mnuchin said: “The technology needs to be disconnected from ByteDance.”

Discussions over TikTok's future continue, with American investors and companies showing interest.

President Donald Trump has indicated that a deal is expected soon, stressing that the US must benefit from any agreement.