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If Perplexity AI Can’t End The TikTok Ban, Here’s What Brands Can Do

It seems we’ve reached a new chapter in this epic TikTok ban showdown, as Perplexity AI rides in on its algorithmic Pegasus, proposing a merger that would, essentially, allow the company to walk away with a $300 billion valuation. Forgive me for cutting to the chase, as consequences are often glossed over in the pursuit of a shiny payout. Perplexity AI would merge with TikTok US to become a new company called “NewCo.” ByteDance, TikTok’s parent company, wouldn’t cut ties completely, but a newly formed U.S. board of directors would have complete control over the user data and national security information serving as the catalyst for this brouhaha. As former Treasury Secretary Steven Mnuchin previously said, “The technology needs to be disconnected from China … There’s absolutely no way that China would ever let us have something like that in China.”

ByteDance will keep the valuable proprietary algorithm that makes TikTok addictive, suggesting the remaining watered-down TikTok may not be as effective as companies told me earlier. But, everyone would make money! When the new NewCo goes public with a valuation of at least $300 billion, the U.S. government gets to sweep in like an ex-spouse and receive half, without getting any voting rights or a board seat. This, apparently, was the Trump administration’s idea. Ivana Trump really taught The Donald well. ByteDance’s existing investors would also get an equity stake in the new structure but must stay silent while the U.S. board runs the show.

Alas, I promised I wouldn’t allow my former college years of studying politics to interfere with my current business years of helping brands and marketers create stakeholder value, so we’ll stick to what all of this means for marketers. And that is, whether TikTok stays or goes, without that juicy, juicy algorithm ByteDance doesn’t seem willing to part with, the app is never going to be the same. In this final article of this series, I connected with a few brands, marketers and content creators on what they plan to do when the bell tolls for TikTok as we’ve known it.


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