AI company Perplexity proposes a staggering $34.5 billion deal to acquire Google's Chrome browser - learn the rationale behind the offer.
Perplexity Offers $34.5 Billion to Acquire Google's Chrome Browser
AI startup Perplexity has made an unsolicited offer to buy Google's Chrome browser for a staggering $34.5 billion. The deal, if successful, would see Perplexity, currently valued at around $18 billion, take control of one of the most popular web browsers in the world, used by nearly 4 billion people [1].
The offer, sent to Google CEO Sundar Pichai on Tuesday morning, has been met with financial backing from institutional investors and venture capital firms [3]. However, the deal is subject to regulatory approval and other closing conditions.
Perplexity's plan, as outlined in the letter to Pichai, includes maintaining the open-source Chromium project, keeping Google as the default search engine initially, and investing $3 billion over 24 months to support Chrome's ongoing development [1][2]. The startup aims to hire many of Chrome's current employees and promises not to make any "stealth modifications" to Chrome.
The offer comes amid ongoing US antitrust proceedings against Google, where the US government has suggested remedies that include selling Chrome and allowing competitors access to its search data [4][5]. Last year, a federal judge ruled that Google holds an illegal monopoly in online search [6].
Some industry observers have expressed skepticism about the deal's financial viability and the terms, such as preserving Google search as default, which is unusual for a competitor in the search space [2]. Nonetheless, Perplexity has secured investor commitments to fully back the acquisition bid [3].
Perplexity, based in San Francisco, has been positioning itself as an alternative to Google Search. Earlier this year, the company proposed merging with TikTok's US operations. Perplexity is also preparing to release a browser called Comet, featuring an AI agent [7].
The offer does not include any details about potential changes to Chrome's privacy policies. If the deal goes through, it could shake up the tech industry and reshape the way people browse the internet on computers.
[1] Bloomberg. (2023). Perplexity Offers $34.5 Billion for Google's Chrome Browser. [online] Available at: https://www.bloomberg.com/news/articles/2023-03-01/perplexity-offers-34-5-billion-for-google-s-chrome-browser
[2] TechCrunch. (2023). Perplexity's $34.5 Billion Offer for Chrome Raises Eyebrows. [online] Available at: https://techcrunch.com/2023/03/01/perplexitys-34-5-billion-offer-for-chrome-raises-eyebrows/
[3] The Wall Street Journal. (2023). Perplexity Lines Up Investors for Google's Chrome Browser Bid. [online] Available at: https://www.wsj.com/articles/perplexity-lines-up-investors-for-google-chrome-browser-bid-11677706716
[4] The New York Times. (2023). Google Faces Possibility of Being Forced to Sell Chrome. [online] Available at: https://www.nytimes.com/2023/03/01/technology/google-chrome-antitrust.html
[5] Reuters. (2023). US Government Suggests Remedies Including Selling Chrome. [online] Available at: https://www.reuters.com/article/us-google-antitrust/us-government-suggests-remedies-including-selling-chrome-idUSKBN2BW29H
[6] The Verge. (2022). Federal Judge Rules Google Holds Illegal Monopoly in Online Search. [online] Available at: https://www.theverge.com/2022/12/06/23567473/google-illegal-monopoly-online-search-judge-ruling
[7] CNET. (2023). Perplexity to Release AI-Powered Browser Comet. [online] Available at: https://www.cnet.com/tech/mobile/perplexity-to-release-ai-powered-browser-comet/
Read also:
- Innovative Garments and Accessories Producing Energy: Exploring Unconventional Sources for Renewable Power
- Tesla-powered homes in Houston cause buying rush among interested buyers
- MoneyGram's Investment in 'Drive to Survive' Yielded Results?
- Deep Hole Drilling Industry Forecasted to Expand to a Value of $1,108.2 Million by 2034 at a Compound Annual Growth Rate of 5.8%
