In a bold move, AI search engine Perplexity has made an unsolicited offer to acquire Chrome from Google for $34.5 billion in cash, as reported by Reuters and confirmed by TechCrunch.
Perplexity stated that the terms of the offer include a commitment to maintain Chrome’s underlying engine, Chromium, as an open-source project and to invest $3 billion into its development. The company also promised not to alter the default settings for Chrome users, ensuring that Google remains the default search engine rather than switching to its own AI-powered alternative.
Google has not yet responded to requests for comment, but TechCrunch will update the article if the company provides any information.
This bid follows a proposal from the Department of Justice in March, which suggested that Google be compelled to sell Chrome after a judge determined that the tech giant engaged in illegal practices to sustain its monopoly in online search. Google has disputed the ruling and is determined to fight it.
A spokesperson for Perplexity believes that the court will soon establish terms for potential remedies, possibly later this month. Google is also facing another federal case regarding its alleged monopolization of ad tech, with the DOJ suggesting it divest two of its ad tech products or break up its advertising business.
When the DOJ first proposed that Google divest Chrome, both OpenAI and Perplexity expressed interest in acquiring it. Given that Chrome holds a dominant market share of 68% according to Statcounter, any court ruling requiring its sale would likely attract numerous bidders worldwide.
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Interestingly, the CEO of rival search engine DuckDuckGo testified in April that Chrome could be valued at “upwards of $50 billion,” indicating that Perplexity’s offer could be seen as a bargain if successful.
However, this proposal far exceeds the amount Perplexity has raised from investors and its current valuation. According to PitchBook, Perplexity has raised around $1.5 billion to date, including a recent extension round of $100 million that valued the startup at $18 billion.
In addition, Perplexity recently launched its own browser, Comet, as part of its strategy to expand its AI search business without relying on a browser owned by its main competitor, Google. Furthermore, last month, Perplexity reportedly submitted a bid to merge with TikTok.
SOURCE: TECH CRUNCH
