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A New Bid for TikTok from Perplexity AI Would Give the US Government a 50% Stake (apnews.com) 71

An anonymous reader shared this report from the Associated Press: Perplexity AI has presented a new proposal to TikTok's parent company that would allow the U.S. government to own up to 50% of a new entity that merges Perplexity with TikTok's U.S. business, according to a person familiar with the matter... The new proposal would allow the U.S. government to own up to half of that new structure once it makes an initial public offering of at least $300 billion, said the person, who was not authorized to speak about the proposal. The person said Perplexity's proposal was revised based off of feedback from the Trump administration. If the plan is successful, the shares owned by the government would not have voting power, the person said. The government also would not get a seat on the new company's board.

Under the plan, ByteDance would not have to completely cut ties with TikTok, a favorable outcome for its investors. But it would have to allow a "full U.S. board control," the person said.

Under the proposal, the China-based tech company would contribute TikTok's U.S. business without the proprietary algorithm that fuels what users see on the app, according to a document seen by the Associated Press.

A New Bid for TikTok from Perplexity AI Would Give the US Government a 50% Stake

Comments Filter:
  • by Anonymous Coward
    What could possibly go wrong with a government having control of a social media platform... Oh, wait.
    • by Anonymous Coward
      See: Elon "the saluting nazi" Musk
    • The censorship industrial complex combines established methods of
      psychological manipulation, some developed by the U.S. Military during the
      Global War on Terror, with highly sophisticated tools from computer science,
      including artificial intelligence. The complex’s leaders are driven by the fear
      that the Internet and social media platforms empower populist, alternative,
      and fringe personalities and views, which they regard as destabilizing. Federal
      government officials, agencies, and contractors have gone

      • The fuck...

        This disinformation campaign was advanced by National Institutes of Health head Francis Collins and NIAID’s Anthony Fauci, who oversaw the U.S. government’s response to COVID. Emails made available show that at least two leading researchers told Collins and Fauci in February 2020 that a lab leak was possible and likely. Collins and Fauci publicly dismissed the lab leak theory as a conspiracy theory even though they knew it wasn’t, perhaps for fear of harming cooperation between the U.S. and China or of being implicated in the pandemic since Fauci was instrumental in offshoring this research to Wuhan after Obama banned it on U.S. soil

        That...actually happened? A few days back I had one of those moments where I let out a quiet groan when I read that Trump was wanting to prosecute Fauci. But shit...ok, maybe he's got reasons after all. Yet another reason why I fucking hate politics. And why the fuck would that be banned on US soil? That makes no sense, but...yep...

        https://www.science.org/conten... [science.org]

        Despite that infectious disease experts had already known that something like COVID was inevitable. So why the fuck would we put that

        • by gtall ( 79522 )

          so you listened to the Trey Gawdy hearings....the ones where he later admitted they only held them to kneecap Hilary.

          The only reason la Presidenta wanted to go after Fauci was because Fauci peed all over his hyrdoxychlorquine claims as well as all the rest he sputttered incoherently about to the press.

  • This is starting to look like a bunch of carrion eaters fighting over a carcass.

  • by Pizza ( 87623 ) on Sunday January 26, 2025 @07:17PM (#65120605) Homepage Journal

    50% ownership, none of the voting rights, and the Bad Guys (tm) still have full access to all of the precious data. What exactly is the point again?

    • I think the idea would be to put an embargo on data transfers to the holding company ByteDance used in Singapore to move data to the CCP. If Perplexity and the Feds had enough shares between them, they could effectively enforce this dictate. Later on the Feds could dump their shares on any American party willing to maintain that stance.

      Also the algo would need to be tweaked to stop propagandizing for the CCP etc.

      • by Pizza ( 87623 )

        Ah yes, the "it's bad when they do it, but good when we do it" distinction.

        Meanwhile, as the still-not-entirely-scoped Salt Typhoon hack has demonstrated, the problem is the fundamental _capability_ for data collection and exfiltration.

        • by Shaitan ( 22585 )

          False equivalence. The CCP isn't just some nation state, they are genocidal monsters with a death toll so massive it makes the Nazi death camps look like the school nurse and that is the least of their crimes against just their own people. And they are expansionist, they want to bring their flavor of nightmare to your home soon.

            • by Entrope ( 68843 )

              Mao's "Great Leap Forward" policies caused the Great Chinese Famine [wikipedia.org], which resulted in 15 to 55 million deaths. In sheer death count, it's much worse than their other genocidal campaigns, such as the repression of Uyghurs.

              And they are definitely expansionist: going back to the annexation of Tibet (just two years after the Communists consolidated control over most of the mainland China) all the way to their aggressive posturing and artificial islands [csis.org], they are definitely expansionist.

              Exactly what did you ta

          • False equivalence. The CCP isn't just some nation state, they are genocidal monsters with a death toll so massive it makes the Nazi death camps look like the school nurse and that is the least of their crimes against just their own people.

            You know the 2nd Trump Administration is only a week old. Give them time. And a shout-out - I mean, salute - to Elon ...

            And they are expansionist, they want to bring their flavor of nightmare to your home soon.

            Greenland and Panama would like to have a chat w/you ...

            [Yes, hopefully, I'm being hyperbolic.]

          • And they are expansionist, they want to bring their flavor of nightmare to your home soon.

            Wait. You are saying the US , which hasn't been in a period of peace since the second world war and is currently threatening 4 different allies with invasion isn't expansionist, whereas China who hasn't been in a war (a few border shootouts really) since 1979 and whos only territorial claims have been on territories that historically actually did belong to them, ARE expansionist?

        • One problem at a time.

    • 50% ownership, none of the voting rights, and the Bad Guys (tm) still have full access to all of the precious data. What exactly is the point again?

      False, they lose all access to the data, but they're not banned from investing in the new entity.

      • by Pizza ( 87623 )

        Pray tell, how is this "losing access to the data" to be enforced?

        The same way that CAELA was supposed to be restricted to "legitimate" domestic law enforcement?

    • The point is that 99% of the people talking about shares as in stocks: do not know that shares/stocks without voting rights exist.

      Perhaps this is the case in this example, too?

  • 50%? (Score:4, Insightful)

    by markdavis ( 642305 ) on Sunday January 26, 2025 @07:22PM (#65120613)

    I am all for trying to sell TikTok instead of just banning it and letting it die.

    However, I don't understand this whole "50% government ownership" crap. That isn't the way things are supposed to work in the USA. Government control/ownership over business is way more of a China/CCP thing, which is exactly why TikTok was going to be banned.

    • Re:50%? (Score:5, Insightful)

      by Known Nutter ( 988758 ) on Sunday January 26, 2025 @07:31PM (#65120633)

      That isn't the way things are supposed to work in the USA

      That's the way things are supposed to work in the USA *now*.

      What could possibly go wrong with government owned and controlled media?

      • >"What could possibly go wrong with government owned and controlled media?"

        Everything, of course.

        But, most of the media *has* been in bed with government for quite a few years at this point.

      • by Shaitan ( 22585 )

        This provides literally no control, it is a passive financial only ownership stake with no voting rights or board seat.

      • What could possibly go wrong with government owned and controlled media?

        I got modded down when I made similar comments about BBC, CBC, and ABC. The idea of state media has never sat well with me. Socialists think it works well...until the government turns against them. Though at the time, I'm pretty sure those who down-modded me took solace in the fact that their guy was in office and just assumed that it would always be that way.

        • by q_e_t ( 5104099 )
          I'm not sure what the BBC has to do with socialism since its existence as a state-supported broadcaster was created by a Conservative government.
    • Reply to self:

      Doing more research, I am not sure this summary/article is correctly interpreting what was meant by "50% USA ownership", it very well could be "50% USA corporate ownership." Even so, shouldn't it be 51+% ownership?

    • Oh no it’s completely different when republicans do it.

      Like Reagan getting rid of open carry in California and granting amnesty for illegals.

    • by ceoyoyo ( 59147 )

      It does seem odd. Why pay money for an actual stake when FISA court orders are free (and secret)?

    • by Shaitan ( 22585 )

      It's a passive financial only ownership with no control. The government is creating the value by setting a deal that will let it exist. Most likely they'll turn around and divest it to pay for something that otherwise would have cost tax dollars or reduce the debt, etc.

    • by flink ( 18449 )

      We are ok with it being state media as long as it is our state, apparently.

    • Government control/ownership over business is way more of a China/CCP thing

      Well technically, the CCP is the government. Their citizens don't have any say. In the US the citizens are the government via elected representatives. So not the same at all actually.

    • "Nice TikTok you've got there, it would be a shame if it was banned instead of giving it to me for $1..."

      The reason you should be against this kind of racketeering is that it has long term consequences for the US economy. When you steal people's stuff they don't tend to invest in your country any more, and if you really piss them off they'll steal your own stuff in theirs.

    • by gtall ( 79522 )

      Like everything involving el Bunko, look for the trail of breadcrumbs into his pocket.

  • We will ban you if you don't sell us the company. WTF is this shit? Back in my day we sprayed cockroaches with RAID. Now ya'll elect them.

  • Without the algorithm to addict the userbase, it's got nothing going for it.
    They want to buy some users who will move on to the next big thing?

    The goal for this bid is clear. Perplexity AI execs want to bump their stock with an IPO so they can cash out with a huge profit.

    • by Big Hairy Gorilla ( 9839972 ) on Sunday January 26, 2025 @08:07PM (#65120685)
      We were addicted before they stuck their fingers all over the algorithm to squeeze more money out of us, and advertisers simultaneously...

      This totally reeks! Government buys majority share block in propaganda machine! They are buying the user base. Its proven now that people are too dumb to notice they are being screwed and too lazy to change apps. So there will be some attrition. Big deal. Look at Shitter. Seems to be doing pretty well for a company that is run on a quarter of the resources it used to have. Share holder value may have taken a beating but it seems to be as influential as ever ..
      • To be fair, this isn't an offer that includes 50% government ownership.
        It's an offer allowing this company to do an IPO that won't restrict the government giving them $150B+ to buy up to 50% later on.

        • by Shaitan ( 22585 )

          It's also a non-voting stake. Basically the government just gets a piece to auction off and use instead of tax dollars to refill social security or something.

    • by Shaitan ( 22585 )

      Addicting a social media userbase is no great secret. But I'd like to be clear that it isn't just that hte sale doesn't include the algorithm, they'll no longer be using the chinese controlled algorithm in the US?

    • The company that is making the offer is an AI startup, so they'd be plugging a new AI addiction engine into it to replicate the experience.

  • Strangely silent on the matters of government owned social media.

  • I'm curious whether the 50% is intended as a bribe; or to ensure that there's someone left holding the bag during the 'dump' phase of the operation. Either way it seems like a lousy move.
  • As if that $150 billion could be spend better on something else like some war in some small country or so.

  • So the US cut ties with Cuba because they "nationalized" businesses and took them away from rightful owners who had created, built, and developed them. 85 years later Cuba is still suffering because the US chose this.

    HOW THE HELL IS THIS ANY DIFFERENT than the US nationalizing Tik Tok (or threatening its very existence) BECAUSE the company that owns it is in chYna? It it because we have the stupidest orange president ever WHO CAME UP WITH THIS PLAN in 2017 and now is pretending he can "save" a product HE

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