Google Chrome faces an unexpected $34.5 billion takeover bid from AI startup, Perplexity. The acquisition could potentially transpire, regardless of Google's preferences.
Perplexity AI Makes Unsolicited $34.5 Billion Offer for Google Chrome
San Francisco-based startup Perplexity AI has made an unsolicited offer to buy Google's Chrome browser for $34.5 billion. The offer comes amid ongoing antitrust battles, with the Department of Justice (DOJ) suggesting that Google divest Chrome to address monopoly concerns.
Founded in 2022, Perplexity AI is an $18 billion startup that is preparing the wide release of its own browser, Comet. The company has stated that it wouldn't make any "stealth modifications" to Chrome if the deal went through and would extend offers to a substantial portion of Chrome talent.
The offer is seen as a strategic play linked to the broader antitrust timeline, potentially setting a precedent for future regulatory actions in the tech sector. Multiple large investment funds have agreed to finance the transaction in full, according to Bloomberg.
The Wall Street Journal reported that Perplexity AI believes its offer is in the highest public interest by placing Chrome with a capable, independent operator. This move could significantly impact the browser market, introducing more AI-driven features while posing challenges to user privacy and competition.
Google has not responded to the offer officially, and as of now, it has not been accepted. The situation is complicated by the fact that Google is appealing part of the rulings in an antitrust case, where a federal judge ruled in August 2024 that Google illegally monopolized the online search and search ads markets.
In April, a judge asked ChatGPT's Head of Product Nick Turley if OpenAI would try to buy Chrome if parent company Alphabet was forced to divest, and he said a definite yes. At press time, Google Chrome has around 68% of the web browser market share, with Safari in second place at nearly 16%, Microsoft Edge at 5%, and Firefox at 2.5%.
The outcome of this bid will be crucial for the future of web browsing and digital competition. Perplexity AI has also made a bid of at least $50 billion to buy TikTok in January, according to CNBC. The judge's 286-page opinion stated that Google is a monopolist and has acted to maintain its monopoly. A judge is expected to decide by the end of August what Alphabet must do regarding the antitrust case. Google, however, has indicated it is not interested in selling Chrome.
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References:
- Wall Street Journal
- Bloomberg
- CNBC
- Federal Court Ruling
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