Perplexity's Bold Move to Acquire Chrome from Google
Amidst significant antitrust challenges, Google may soon have to part with one of its most valued assets—Chrome. Following a significant antitrust defeat, the government proposed that Google might need to divest its market-leading Chrome browser, making it available for purchase. Perplexity, a rising player in the AI sector, has made headlines with its audacious $34.5 billion bid, despite its lack of funds for such an acquisition.
Perplexity has carved a niche in the artificial intelligence domain, mainly through its AI-powered search capabilities present on smartphones and its own Comet browser. Propelled by investor support for AI innovations, Perplexity has managed to attract investments amounting to roughly $1 billion, positioning its market value at $14 billion. However, this does not clarify how they intend to fund the Chrome acquisition, as their current offer seems beyond their immediate financial reach.
The influx of capital in the AI sector has made it feasible for companies like Perplexity, even with limited cash reserves, to propose deals such as this. According to reports, the all-cash offer is backed by several venture capital funds, although Perplexity has not disclosed precise details regarding contributors to this funding effort.
During the remedy trial earlier this year, various competitors of Google expressed their interest in potentially managing Chrome. For instance, an OpenAI executive indicated a vision of turning Chrome into an AI-centric experience. This listening undercuts Google's argument claiming there aren't capable industry players to oversee Chrome efficiently.
Google has strongly objected to the divestment proposal, labeling it as a "radical interventionist agenda." More than just a browser, Chrome stands as the foundation for Chromium, an open-source platform for numerous browsers, including Microsoft's Edge. Perplexity's bid includes a commitment of $3 billion to sustain Chromium for two years, vowing to retain its open-source status and not to impose changes on the default search engine in the browser.
Judge Amit Mehta's decision regarding the remedies in this antitrust case could arrive any day now. Perplexity's offer, albeit timely, might face a protracted road if the ruling mandates a Chrome sale. Notably, estimates for Chrome's value stretch into the hundreds of billions, far exceeding Perplexity's bid.
Further legal confrontations are anticipated if a sale is enforced. Moreover, any purchaser might meet resistance from the user base, wary of a venture capital-dominated ownership of Chrome. The familiarity with Google accumulating user data is seen as a devil the users have learned to live with over time.
