Google faces a potential takeover bid for Chrome, valued at $34.5 billion, amidst an ongoing antitrust case from the Department of Justice
In a surprising move, tech company Perplexity has offered a staggering $34.5 billion in cash to purchase Google's Chrome web browser. This bid is strategically positioned to align with potential antitrust remedies that require Google to divest Chrome, as part of the ongoing Department of Justice (DOJ) case against the tech giant.
However, Google's response to this offer remains pending. Industry sources estimate that Chrome's value is at least $50 billion, and possibly much higher, making Perplexity's offer seem too low to succeed.
The offer from Perplexity, a company with a valuation of $18 billion, is more than double its worth, raising questions about the financing and completion of the deal. Despite claims of investor backing, the future of this potential acquisition remains uncertain.
Google has not yet publicly commented on the offer, but it continues to navigate the DOJ antitrust proceedings and potential divestiture demands. If forced to sell Chrome, other bidders with deeper pockets, such as OpenAI, could potentially enter the process.
Perplexity's bid appears to be a strategic move to raise its profile and propose a solution in the ongoing antitrust situation, rather than a near-term certainty for the ownership transfer of Chrome. The company recently launched Comet, an AI-powered browser built on the Chromium project, hinting at ambitious plans for its future in the technology industry.
A federal judge, Amit Mehta, is expected to rule this month on possible remedies for Google's alleged monopoly, which could include forcing Google to sell Chrome. The DOJ has alleged that Google illegally monopolized the search market with Chrome. Google, however, is reportedly prepared to "fight for years" if necessary to prevent the sale of Chrome.
Perplexity's bid includes commitments to keep Chrome's Chromium base open-source and invest $3 billion in it over two years. This move could potentially bring significant improvements to the browser and solidify Perplexity's position in the tech industry.
Despite the uncertainty surrounding the offer, Perplexity's ambitions seem to extend beyond its current position in the AI space. The company has been explored by companies like Samsung and Motorola as a potential default assistant for their smartphones, indicating a growing presence in the tech world.
As the antitrust case against Google unfolds, the future of Chrome remains uncertain. Whether Perplexity's offer will lead to a change in ownership or simply serve as a catalyst for further discussion, the tech industry watches with bated breath.
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