Perplexity proposes $34.5 billion to acquire Google’s Chrome browser, shaking the tech sector. This unexpected and bold offer exceeds Perplexity’s estimated valuation of $18 billion. At the heart of this proposal lies a growing instability for Google and its parent company Alphabet in light of an impending antitrust ruling that could impose drastic measures. Google’s resistance to a forced sale raises questions about its implications for innovation and national security.
An Unexpected Offer from Perplexity
The artificial intelligence start-up Perplexity recently announced a $34.5 billion offer to acquire Google’s Chrome browser. This proposal, reported Tuesday by the Wall Street Journal, exceeds the valuation of the company itself, estimated at $18 billion.
Potential Consequences of the Offer
This offer comes amid tensions for the tech giant. Google’s parent company, Alphabet, is under pressure following an imminent antitrust ruling. A federal judge could impose necessary measures following findings that established that Google had maintained an illegal monopoly in the search arena.
Google’s Reactions
Google was quick to react to the possibility of a forced sale of Chrome, arguing that it could harm its business and slow down its technological development. The company also cites risks to national security. To avoid this, Google suggests adjusting its exclusive agreements with partners like Apple, thereby fostering increased competition.
Market Anticipations
Wall Street analysts, such as those from JPMorgan, believe that a forced sale seems unlikely. They rather anticipate a framework for anti-competitive practices and the elimination of exclusivity parameters when accessing Google’s services. These analysts see the outcome as likely to be more favorable to the brand than the proposed sale.
Legal Stakes
The uncertainty surrounding Perplexity’s offer intertwines with other legal issues for Google. A ruling made in April established that Google also maintains monopolies in the digital advertising sector. The company has announced its intention to appeal this decision while continuing its fight to maintain its market position.
Impact on the Tech Sector
This situation raises crucial questions about the future of web browsers and business practices in the tech industry. The implications of such an acquisition could provoke major changes in how companies operate and interact with their users. In a context where the adoption of AI assistants by young people is rapidly growing, this dynamic could redefine the entire online ecosystem.
Frequently Asked Questions
What is the reason for Perplexity’s $34.5 billion offer to buy Google Chrome?
Perplexity wants to expand its technology portfolio and strengthen its presence in the browser market by acquiring Chrome, which is a major product of Google.
How does Perplexity’s offer compare to its own valuation?
Perplexity’s $34.5 billion offer exceeds its own valuation estimated at $18 billion.
What are the implications of the potential sale of Chrome for Google?
A sale could have significant consequences for its operations, technological development, and even national security according to Google.
What is the legal context surrounding this purchase offer?
Google faces risks due to an antitrust ruling that could force the company to sell Chrome, following a judicial decision that declared it was maintaining an illegal monopoly in the search market.
What positions does Google hold regarding Perplexity’s offer and the sale of Chrome?
Google opposes a forced sale, claiming that it would harm its business and innovation potential.
What arguments do Wall Street analysts present regarding the sale of Chrome?
Some analysts believe that a forced sale is unlikely and anticipate more restrictions on anti-competitive practices rather than a sale.
How might this situation influence the browser market in the future?
If Perplexity’s acquisition of Chrome materializes, it could disrupt market dynamics, favoring increased competition at Google’s expense.
What alternatives has the justice considered instead of forcing the sale of Chrome?
Google has proposed adjustments to exclusive agreements with other companies, like Apple, to promote greater competition.
