Search.com beats Perplexity with $35B bid for Google Chrome
What's the story
Perplexity's $34.5 billion bid to acquire Google Chrome has been outbid by generative AI search platform, Search.com. The latter has submitted a counter-proposal of $35 billion for the acquisition of the popular web browser. Unlike Perplexity, Search.com has confirmed that its proposal is backed by J.P. Morgan and intends to make changes to Chrome if successful in the acquisition process.
Proposed changes
Search.com promises to eliminate ad clutter if it acquires Chrome
Search.com, a subsidiary of Public Good, has promised some major changes to Chrome if it acquires the browser. These include cash back for users, revenue sharing for publishers, and a less ad-cluttered web experience. The company said in a press release that it wants to revolutionize the internet by eliminating the ad-saturated experience that has plagued it for years.
Market reaction
Google's silence speaks volumes, says investor
So far, Google has not commented on either Perplexity or Search.com's bid. Alphabet's share price remained largely unchanged following these two unsolicited aquisition offers, suggesting investors are not treating the bids for Chrome as credible. However, if forced to divest, Google could appeal the decision to the US Court of Appeals and potentially even the US Supreme Court.
Funding strategy
Perplexity seeks outside investors for Chrome bid
Perplexity, an AI search start-up, has said it will seek outside investors to fund its $34.5 billion bid for Chrome. The company has also promised not to make stealth modifications to the web browser if the deal goes through. Perplexity had raised $100 million in a funding round in July at a valuation of $18 billion and is now targeting one of Google's prized assets with its latest offer.
Investment assurance
$3 billion investment promised in web infrastructure
Perplexity has also promised to invest $3 billion in Chrome and its underlying web infrastructure over two years if the deal goes through. However, this is contingent on a US district court ruling in favor of the Department of Justice (DOJ) and forcing Google to spin out its market-leading web browser. The DOJ has called for Google's divestiture of Chrome as part of proposed remedies for anti-competitive behavior.