A shocking M&A proposal
Recently, an explosive news swept the technology and capital markets: artificial intelligence search engine company Perplexity AI is planning to acquire TikTok's US business for more than $50 billion. This potential deal is not only large in scale, but also represents the intersection of two hot fields - AI and short video social media. What kind of chemical reaction will such a combination bring? Is it a win-win future or a risky gamble?
In the global M&A market, American Goheal M&A Group (hereinafter referred to as: Goheal) has always been famous for its precise and efficient M&A strategies. Goheal has also been paying close attention to this transaction and even regards it as a potential turning point for changes in the technology industry.
Who is Perplexity AI? Why is it targeting TikTok?
Founded in 2022, Perplexity AI is a company that focuses on artificial intelligence search engines, with the goal of creating search tools that can directly generate answers. Although it was established a short time ago, Perplexity AI has risen rapidly and is currently valued at $9 billion, which is favored by capital. In contrast, TikTok's US business has long been a giant in the field of short videos. Data shows that in 2024 alone, TikTok's monthly active users in the United States have exceeded 150 million, advertising revenue has reached $15 billion, and market share has remained the first.
So why did Perplexity AI acquire TikTok's US business? The reasons may include the following:
1. User base and data accumulation: TikTok has a large user base and massive data. Combined with Perplexity AI's AI technology, it can greatly improve personalized recommendations and user experience.
2. Diversified layout: The single search engine business is highly competitive. The acquisition of TikTok can allow Perplexity AI to expand the short video market and provide users with more diversified services.
3. Challenge traditional technology giants: Google and Meta have long dominated the search and social fields, and this step of Perplexity AI is obviously trying to break this pattern.
Challenges behind the $50 billion deal
Although the deal seems attractive, Perplexity AI faces not only funding issues but also multiple challenges in policy, competition and operational integration to actually complete it.
Policy risks: TikTok's parent company ByteDance has long been under scrutiny by the US government, and it remains unknown whether Perplexity AI can successfully obtain regulatory approval.
Source of funds: The $50 billion price tag is a huge pressure for Perplexity AI, which is currently valued at only $9 billion. This requires external financing or strategic investment, and Goheal, as a leading global M&A advisory firm, may provide assistance in fund raising and M&A plan design.
Difficulty of integration: Short videos and AI search engines are completely different businesses. How to achieve seamless integration in technology, operations and user experience will determine the success or failure of this deal.
Industry response: The future of a double-edged sword
As soon as the news of this merger and acquisition came out, it triggered heated discussions in the industry. Some people believe that this will be an innovation in the field of science and technology, allowing AI technology to be combined with short videos to create more possibilities. But some people are also worried that such an acquisition may weaken TikTok's original advantages and even affect its user experience. Interestingly, Goheal pointed out in a recent industry report that although cross-field mergers and acquisitions have great potential, the failure rate is also high, especially in the integration process, the difficulty of cultural and business integration is often underestimated.
The reaction of the capital market is also quite subtle. After the news was announced, Perplexity AI's valuation expectations increased significantly, but the market showed a certain wait-and-see attitude towards TikTok's future performance.
What do you think of this deal?
Perplexity AI plans to acquire TikTok's US business for US$50 billion, which is undoubtedly one of the most watched news in the technology industry in 2025. Will such a deal be successful? Can the perfect combination of AI and short videos really be achieved in the future? Or will this be an overly radical adventure? Welcome everyone to share your views in the comment section, let us discuss this highly anticipated deal together!
