AI start-up Perplexity makes $34.5B bid to buy Google Chrome
What's the story
AI start-up Perplexity has made a $34.5 billion offer to buy Google's Chrome browser. The bid is higher than Perplexity's current valuation of $18 billion, but the company claims that several investors have agreed to back the deal. This comes as US District Judge Amit Mehta considers remedies after ruling last year that Google illegally monopolized search.
Strategic move
Will retain Google as the default search engine: Perplexity
Perplexity's offer matches analysts' estimates of Chrome's enterprise value, which ranges from $20 billion to $50 billion. The company said its bid is "designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator." It also promised to keep Chromium, the open-source platform that powers Chrome, and retain Google as the default search engine.
Legal hurdles
Google argues forced sale would create security risks
Google has resisted the forced sale of Chrome, arguing that it would harm its business, undermine investment in new technology, and create security risks. The DOJ's 2020 antitrust lawsuit against Google has also proposed other potential remedies such as limits on default search deals with device makers and requirements to share data with rivals. However, Google has suggested less sweeping changes like modifying its exclusive agreements with Apple, Mozilla, and Android partners.
Impact potential
Perplexity's offer could influence Judge Mehta's decision
Analysts believe Perplexity's offer could influence Judge Mehta's decision by showing there is a credible buyer for Chrome, which could strengthen the case for a divestiture. While legal experts say a forced sale remains unlikely, Mehta has called it potentially "cleaner and more elegant" than behavioral remedies. Founded in 2022, Perplexity recently launched its own browser, Comet, to select users.