The revised proposal allows for a new structure merging Perplexity AI and TikTok's U.S. business. The U.S. government could acquire up to a 50 percent nonvoting stake after a public offering valued at $300 billion or more. ByteDance would maintain equity in the new entity but cede control to a U.S. board.

For now, TikTok lives to fight another day. But as this saga continues to unfold, it’s clear that the battle over its future has only just begun.