Snake Swallows Elephant? US Media: Perplexity's $25 Billion Bid for Google Chrome is a Public Relations Stunt

Perplexity wants to acquire Chrome

Phoenix News Tech - Beijing Time August 13, AI startup Perplexity proposed on Tuesday to acquire Google's Chrome browser for $25 billion (approximately RMB 2477 billion). According to US business magazine Fast Company, this deal is more of a public relations stunt and no one should take it seriously.

This offer is much higher than Perplexity's own estimated value of $18 billion, making it a "snake swallows elephant" transaction. However, Perplexity stated that multiple large venture capital funds have committed to fully supporting this deal.

Currently, US District Judge Amit Mehta is weighing whether to force Google to sell the browser to reduce its dominant control over online search. Last year, Mehta ruled that Google had illegally monopolized the search market and expects to make a decision on how to restore competition this month.

Perplexity's offer may be sending a signal to the court: if the court forces Google to sell Chrome, there is already a willing buyer. In its letter to Alphabet CEO Sundar Pichai, Perplexity stated that its proposal to acquire Chrome "is intended to satisfy the highest public interest in antitrust relief and have Chrome transferred to an independent and capable operator."

Ruse

However, Fast Company questions whether a company of Perplexity's scale can actually acquire the world's most popular web browser. This is indeed puzzling, but also a high-level publicity stunt.

Perplexity Company

According to Fast Company, Perplexity's acquisition proposal is likely not a serious strategic move.

"This startup company's public relations strategy is very clever, but no one should take this stunt seriously." Neil Chilson, former chief technology officer of the Federal Trade Commission and current AI policy director at the Abundance Institute, said.

Seriously Underestimated

Colin Sebastian, an analyst at Beacon Global Capital, stated that Perplexity's offer "seriously underestimates the value of Chrome assets and should not be taken seriously."

Sebastian estimates that Chrome's asset value is approximately $100 billion. He also believes that forced divestment is unlikely, as it could lead to users facing lower-quality, less-reliable products. Moreover, with other alternatives available to restore the intended judicial outcome, having Chrome removed from Google's platform would create complexity.

Who Should Be Acquired?

Perplexity has a team of excellent AI engineers, and its "answer engine" product is quite impressive. The company has also been very flexible in releasing new products to enhance its core services. Recently, it released its own browser called Comet.

However, facing Google search, Perplexity is still a small player. Its handled search volume is negligible compared to the total internet search volume, and the recommended product searches for its brand website are even more insignificant.

In general, Perplexity is like a company with potential for acquisition, rather than an acquirer.

Perplexity applications

According to Meta, the parent company of Facebook, it had talked to Perplexity about an acquisition earlier this year but did not reach an agreement. Other potential buyers may have also been in contact with this startup company, including Apple.

Public Relations Strategy

However, due to the emergence of generative AI, the existing market dominance rules in the tech industry may be quietly changing. In this potentially transformative period (when Google and Apple might be giving birth), corporate image is crucial.

Perplexity CEO Aravind Srinivas seems to be well aware of this. He knows that in the so-called AI revolution, companies must make their names synonymous with OpenAI, Anthropic, and other newcomers. He has been doing a great job, frequently participating in podcasts, public speeches, and publishing popular tweets.

Therefore, Perplexity's proposal to acquire Chrome may be coming from the same strategy, which is to make a show of it.

For a company like Perplexity, if it wants to convince consumers that it can actually inherit Google's search throne, it may need to bluff and make itself seem on the same level as these industry giants. Perplexity proposed acquiring Google's core business, which may be aimed at achieving this goal.

As of publication, Google has not commented. (Author/ Xia Yu)