In a stunning move that has sent ripples through the tech world, the AI-powered search engine Perplexity has submitted a $34.5 billion all-cash offer to acquire Google Chrome. The unsolicited bid is nearly double Perplexity’s own valuation. It is seen as a potential solution to Google’s ongoing antitrust problems.
The timing of the offer is no coincidence. Google is facing mounting pressure from the U.S. Department of Justice. A court recently found the company held an illegal monopoly in online search. The government has proposed that Google be forced to divest its Chrome browser, which is used by over three billion people worldwide. A final ruling on remedies in the antitrust case is expected soon.
Perplexity’s Vision for Chrome
Perplexity’s CEO, Aravind Srinivas, outlined the company’s vision in a letter to Alphabet CEO Sundar Pichai. The offer is “designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection.” The company also pledged to keep the underlying Chromium code open-source and to invest $3 billion over two years in the browser’s development.
Will Google Accept the Offer?
While Perplexity has not disclosed how it will finance the massive deal, it claims several unnamed investment funds have offered to back the transaction. Perplexity has a history of making bold offers; earlier this year, it proposed merging with TikTok’s U.S. operations.
Despite the audacious bid, analysts are skeptical that Google will accept the sale. Chrome is a cornerstone of Google’s search and advertising business. It provides valuable user data crucial for its AI-driven strategies. Google has already stated its intention to appeal the antitrust ruling and has not indicated any willingness to sell the browser. The company argues that a forced sale would “hobble innovation” and have global ramifications.
The Future of the Browser Market
Even if Google were to consider a sale, some experts believe Perplexity’s offer significantly undervalues Chrome. They suggest a forced-sale price could be as high as $50 billion. The high-stakes drama highlights the growing importance of web browsers in the AI era. It also shows the fierce competition among tech giants to control the gateways to internet access and user data.
