Perplexity Puts Bold $34.5 Billion Offer to Google for Chrome Acquisition

Google may soon be compelled to divest one of its most prized assets following its significant legal defeat in an antitrust case. In response to the proposed requirement for Google to sell its market-leading Chrome browser, Perplexity has made an audacious offer amounting to $34.5 billion, despite it being more than twice the company's current valuation.

Perplexity has leveraged the current enthusiasm around artificial intelligence, with its AI-driven search tools already present on smartphones and integrated into its unique Comet browser. Although investors have entrusted Perplexity with almost $1 billion, pushing its valuation to about $14 billion, the company's audacious bid to purchase Chrome starkly contrasts with its actual cash reserves. Notably, the substantial bid primarily relies on backing from several venture funds, the specifics of which remain undisclosed.

During the recent trial, numerous competitors of Google showed interest in acquiring Chrome, with an executive from OpenAI proposing to transform Chrome into an AI-first platform if acquired. This testimony was seen as a rebuttal to Google's assertion that no other entity could manage the browser successfully.

Google has firmly opposed the proposed divestment, describing it as part of a "radical interventionist agenda". The broader implications of divesting Chrome include its integral role as an open-source foundation known as Chromium, which supports several non-Google browsers like Microsoft Edge. Perplexity's proposal encompasses a $3 billion commitment to sustain Chromium over the next two years, asserting an intent to maintain its open-source nature and refrain from dictating changes to its default search engine.

The ruling by United States District Court Judge Amit Mehta regarding these remedies could be delivered imminently, potentially opening the pathway for Perplexity's offer, though the process might still encounter prolonged legal disputes. Even if the court mandates a sale, Google might anticipate fetching a more substantial sum than Perplexity's current proposal. Estimates have varied, with figures such as DuckDuckGo's suggested $50 billion or even reaching into the hundreds of billions, given the pivotal role of Chrome in AI advancement making any sale potentially detrimental to Google's long-term interests.

There remain challenges beyond just legalities, as there could be skepticism from users regarding an AI startup or a coalition of venture capitalists taking ownership of Chrome. Despite Google's longstanding data-gathering practices via Chrome, this potential change introduces considerable uncertainties.