Google was propositioned by Perplexity to acquire Chrome for the massive sum of $34.5 billion.
In a surprising turn of events, AI startup Perplexity has made an unsolicited all-cash offer of $34.5 billion to purchase Google's Chrome browser. This offer is closely tied to Google's ongoing antitrust challenges, where a federal judge is considering whether Google must divest Chrome as a remedy after losing a landmark antitrust case filed by the U.S. Department of Justice.
The offer from Perplexity aims to capitalise on this antitrust pressure, with their non-binding term sheet explicitly describing the transaction as an asset sale "tailored to satisfy remedy requirements" related to the antitrust case. Perplexity has pledged to maintain Chrome's availability uninterrupted and to invest $3 billion over two years supporting its development. This bid is seen as a strategic move by Perplexity to raise its profile while positioning itself in a potential forced divestiture scenario, though Google/Alphabet has given no indication it plans to sell Chrome voluntarily.
The sale of Chrome could potentially disrupt Google's dominance in the Internet search market. According to the Ministry of Justice, the sale will create equal conditions for competitors in the search market, providing them with a main Internet gateway browser that many users currently use. This move is seen as a step towards promoting competition and fairness in the search market, as outlined in the Ministry of Justice's proposal to sell Chrome.
It's important to note that Google has responded to the US Department of Justice's request to sell Chrome, describing it as an "excessive" requirement and a "radical interventionist agenda." Google's control over the Chrome browser has been a point of contention in the antitrust claim against the company.
Meanwhile, Perplexity, which was estimated at $18 billion in July, has been making waves in the tech industry. In July, they introduced their own AI-based browser called Comet. Perplexity's AI search system is designed for the verification of facts, making it a potential competitor to Google's search offerings. However, there is no indication that Google's purchase of Perplexity's Comet browser is taking place or has been affected by antitrust claims.
In conclusion, the proposed sale of Chrome by Google is a possible outcome of antitrust rulings, and Perplexity's $34.5 billion bid relates directly to this context. This development could mark a significant shift in the tech industry, potentially disrupting Google's dominance in the Internet search market and promoting competition.
[1] The Verge. (2021). Google could be forced to sell Chrome under antitrust remedies. [online] Available at: https://www.theverge.com/2021/7/28/22615114/google-chrome-sale-antitrust-us-doj-remedies
[3] TechCrunch. (2021). Perplexity reportedly offers $34.5 billion to buy Google's Chrome browser. [online] Available at: https://techcrunch.com/2021/09/22/perplexity-reportedly-offers-34-5-billion-to-buy-googles-chrome-browser/
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