Illustration of the Tiktok app logo on a smartphone screen displayed with the American flag.
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AI on Sunday set to review the merger proposal it submitted to Tiktok Parent Bytedance. The proposal, which would create a new entity combining Tiktok US and Tiktok US, would now allow the US government to own up to 50% of the new company over a future IPO.
A proposal document seen by CNBC, which was shared with Bytedance and potential new investors, details a new US holding company “Newco.”
The document suggests that Bytedance contributes to Tiktok US, minus the underlying recommendation algorithm, in exchange for the company’s existing investors receiving equity in the new company. The AI would offer itself in exchange for its investors receiving a distribution to Newco Equity.
Money for the merger would come from “third capital provider(s) for an agreement (to be mutually agreed upon),” according to the proposal document, which would provide capital for “one-time dividend payments to investors in governance structures” and to assist The new entity is growing.
From Artificial Intelligence, AI search engine startup with Openai and Googlebegan 2024 with a valuation of nearly $500 million and ended the year with a valuation of about $9 billion, after attracting increased investor interest amid the generative AI boom — as well as controversy over plagiarism accusations. Investors have viewed AI-assisted research as one of Google’s main risks, as it has the potential to change the way consumers access information online.
Last year, Openai, which started the AI craze in late 2022 with ChatGPT, introduced a search engine called SearchGPT. Google later launched an “AI Overview” in search, allowing users to see a quick summary of answers at the top of the results.
A source familiar with the situation said earlier this month that the proposed new structure would allow most of Bytedance’s existing investors to retain their equity exposure and would bring more video into the mix. Although implicitly to the audience Won’t sell Tiktok Us, that’s part of the reason the puzzled AI believes it has a shot with its offer — because the deal would be a merger rather than a sale, the source added.
Under the revised proposal, the US government could own up to half of the new structure once it is worth at least $300 billion, according to the source.
A fair price is set at “north of $50 billion” but the final figure tied to the proposal will be determined, in part, by which of Betians’ existing shareholders want to remain part of the new entity and which want to be cashed out, a source said.
Although any potential transaction between the AI and the country would likely take months to complete, President Donald Trump has so far temporarily restored Tiktok in the US and proposed plans that include US stakeholders buying the company and then selling a 50% stake to the US. United government. In a video posted to Tiktok earlier this month, CEO Shou Zi Chew said: “I want to thank President Trump for his commitment to working with us to find a solution that keeps Tiktok available in the United States.”
Al Hera is one of many companies and individuals vying to be the one to buy or merge with Tiktok, which reports include Microsoftand oracle And maybe Elon Musk. On Saturday, President Trump said he would likely have a decision on the future of the app in the United States in the next 30 days.
