According to Reuters, the AI search engine newcomer Perplexity has taken an astonishing step by formally offering to acquire Google's browser Chrome for 3.45 billion US dollars in cash. This bold move directly targets Google's core business, especially during a sensitive period when it is facing antitrust challenges.
Details and Commitments of the Acquisition
When Perplexity revealed the details of the acquisition, it emphasized that the offer included several important commitments. First, Perplexity promised to continue keeping the underlying engine of Chrome, Chromium, open source, and committed to investing an additional 3 billion US dollars into this open-source project.
More notably, Perplexity promised not to change the default settings of Chrome users, especially the option of Google as the default search engine. This means that even if the acquisition is successful, Perplexity will not set its own AI-driven search engine as the default option. This move undoubtedly aims to alleviate concerns from regulatory authorities and users.
Rooted in Google's Antitrust Dilemma
The background of this acquisition offer is the U.S. Department of Justice's proposal earlier this year to force Google to sell Chrome. Previously, a judge ruled that Google's actions aimed to maintain its monopoly in the online search market, which violated the law. Although Google strongly denied this and plans to appeal, Perplexity seized this opportunity. A spokesperson for Perplexity believes that the court will soon implement remedial measures, opening the door for potential acquisitions.
Market Competition and Value Considerations
Perplexity is not the only tech company interested in Chrome. When the Department of Justice first proposed that Google spin off Chrome, both OpenAI and Perplexity expressed interest in acquiring it. Considering that the Chrome browser holds a 68% global market share, once the court forces the sale, it will certainly trigger a fierce bidding war.
Interestingly, the CEO of competitor DuckDuckGo once estimated the value of Chrome could be "over 5 billion US dollars." If Perplexity's 3.45 billion US dollar offer ultimately succeeds, this will be seen as a very favorable deal in the market.
However, the 3.45 billion US dollar offer far exceeds Perplexity's financial capacity. According to PitchBook, this startup has raised about 1.5 billion US dollars in funding so far, with an estimated valuation of 1.8 billion US dollars. Despite this, Perplexity still shows strong ambition. Just last month, they launched their own browser Comet, and it was reported that they had also made a merger offer to TikTok.
As of the time of writing, Google has not responded to this matter.