Perplexity AI has revised its merger proposal to ByteDance, the parent company of TikTok, to include a provision allowing the US government to own up to 50% of the new entity following an IPO, CNBC reported.

Under the proposal, ByteDance would sell TikTok US to the investors, which would give TikTok's existing investors equity in the company. The proposal would also exclude TikTok's core recommendation algorithm,

ByteDance, TikTok’s parent company, is required to sell the app to a U.S.-based buyer or face a nationwide ban.

By Dawn Chmielewski, Kanishka Singh and Milana Vinn NEW YORK/WASHINGTON (Reuters) -The administration of U.S. President Donald Trump is working on a plan to save TikTok that involves tapping software company Oracle and a group of outside investors to effectively take control of the app's operations,