🤖 Perplexity AI Proposes Merger Bid With TikTok

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Good Morning. This is the Investor Lookout with the daily digest.

Here’s what we got today:

  • 🤖 Perplexity AI Submits Bid To Merge With TikTok

  • 🇪🇺 X Owner Wants To ‘Make Europe Great Again’

  • 🎮 Nintendo Learns From Past Launches When Debuting the Switch 2

Perplexity AI Submits Bid To Merge With TikTok

Merging AI with social video? That might raise a few eyebrows—plus a ton of new search queries. Perplexity AI has submitted a proposal to ByteDance for a deal that would combine Perplexity with TikTok U.S. and additional capital partners. According to a source familiar with the arrangement, most of ByteDance’s investors would keep their shares, while Perplexity gains a video platform boost. The confidential bid is said to be structured as a merger rather than a direct sale. TikTok has signaled it may “go dark” in the U.S. unless the Biden administration assures no penalties for hosting the app, though President-elect Donald Trump stated he would “most likely” grant another 90 days for negotiations once he takes office.

Jakub Porzycki | Nurphoto | Getty Images

  • Perplexity AI’s valuation jumped from about $500 million to roughly $9 billion within 2024.

  • A source estimates the new entity’s worth could surpass $50 billion, depending on which ByteDance investors remain.

X Owner Wants To ‘Make Europe Great Again’

There should be a prize for the best acronym designer. Elon Musk is intensifying his involvement in European politics through social media and public statements. On X, he wrote on Saturday a variation of Donald Trump's famous MAGA slogan, writing "Make Europe Great Again" (MEGA). He expressed concern about what is seen as pervasive pessimism in Europe. Musk also authored an op-ed in a German newspaper praising the far-right Alternative for Germany (AfD) party, framing its views on immigration as preserving German identity. The richest man in the world also criticized German Chancellor Olaf Scholz, calling him incompetent.

Anna Moneymaker/Getty Images

  • Musk has never held any government position and has not been elected for his Department of Government Efficiency co-chair position.

  • Scholz pushed back on Musk's comments, stating, "Don't feed the troll."

Nintendo Learns From Past Launches When Debuting the Switch 2

Looking for a new level-up? Nintendo’s ($JP:7974) Switch 2 just made its cameo in a 141-second trailer, showcasing a bigger screen, extra USB-C port, and magnetically attached controllers—familiar but refined. Nintendo’s stock dipped 4.3% after the reveal, though it had climbed 15% over the prior three months. The original Switch sold 146 million units—third on the all-time console charts—and a new “Mario Kart” appears in the trailer, building on the 64 million copies sold by the previous version. Analysts say game catalogs are crucial: first-party titles have consistently driven Nintendo’s hardware. At this stage, many questions remain unanswered about the console’s tech specifications, price, and launch date, with no further details beyond the short trailer.

PHILIP FONG/AGENCE FRANCE-PRESSE/GETTY IMAGES

  • The original Wii sold 102 million units, but the Wii U follow-up contributed to Nintendo’s operating losses in fiscal 2013 and 2014.

  • The Switch generated 1.3 billion game sales, the highest software total for any Nintendo console so far.

Market Analysis For the Average Investor 🔎

#1

A combination of AI-driven search and short-form video could point to evolving opportunities in media, advertising, and technology.

#2

Musk’s statements often influence how consumers, governments, and business partners view his ventures. Investors may want to note any impact on Tesla or other Musk-led companies in European markets.

#3

Nintendo’s previous console success underscores the importance of strong game libraries, which can translate to higher software sales and sustained brand loyalty—key factors for shareholders to monitor.

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