Can Perplexity’s Longshot Bid for Google Chrome Succeed?

Summary

WSJ What’s News: "Can Perplexity’s Longshot Bid for Google Chrome Succeed?"

Release Date: August 12, 2025
Host: Alex Osolev, The Wall Street Journal

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1. U.S. Inflation Data and Economic Implications

[00:31] Alex Osolev opens the episode by discussing the latest U.S. inflation figures released by the Labor Department. In July, consumer prices increased by 2.7% year-over-year, maintaining the same rate as June and staying below economists' expectations of a 2.8% rise. However, the core inflation (excluding food and energy) rose by 3.1%, surpassing the forecasted 3%.

Rachel Wolf, WSJ Economics Reporter, provides further insights:

• [01:31] Katherine Blunt explains, "In June, we started to see the first signs that tariffs were beginning to get passed on to consumers. We saw a little more of that in July. So in categories that have a lot of imports like furniture, tires, pet products, there were larger than normal increases last month."

However, the impact was not uniform across all sectors:

• [02:18] Alex Osolov asks about other factors driving inflation.
• [02:21] Katherine Blunt responds, "Services like airline tickets and medical services and car maintenance went up more than predicted," attributing this to the strong job market and ongoing consumer spending.

This robust consumer spending, coupled with the lingering effects of tariffs, suggests a complex inflation landscape influenced by multiple factors beyond just trade policies.

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2. Market Reactions to Inflation Data

The release of the inflation report bolstered investor confidence regarding potential Federal Reserve rate cuts:

• Nasdaq surged by 1.5%, marking its 19th record high of the year.
• S&P 500 climbed 1.1%, achieving its 16th record.
• Dow Jones also advanced by 1.1%.

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3. President Trump's Criticism of Goldman Sachs' Economic Predictions

[03:09] Alex Osolev highlights a notable development where President Trump publicly called for Goldman Sachs CEO David Solomon to replace the firm's chief economist. Trump criticized the economist for inaccurate predictions related to tariffs and their impact on the U.S. economy:

• Trump stated, "Go out and get himself a new economist because the bank… made a bad prediction a long time ago on the market and tariffs." ([03:25])

Although Goldman Sachs declined to comment, this move underscores the administration's broader strategy to challenge financial institutions it perceives as opposing its economic policies.

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4. Perplexity’s Unsolicited $34.5 Billion Bid for Google Chrome

A surprising twist in the tech industry was reported when AI startup Perplexity made an unsolicited offer to acquire Google’s Chrome browser for $34.5 billion:

• [05:10] Alex Osolev introduces the story, emphasizing that Perplexity's valuation is approximately $18 billion, making the bid more than double their current worth.

Meredith McGraw, WSJ Reporter covering Alphabet, elaborates:

• [05:25] Meredith McGraw states, "The company says that it has commitments from several large funds, including VC funds, to back the entirety of the transaction."

The timing of this bid coincides with ongoing antitrust scrutiny:

• [05:47] Meredith McGraw connects the offer to the potential spinoff of Chrome following a U.S. District Judge's ruling against Google's monopolistic practices in the search market. While analysts deem a forced sale unlikely, the proposal introduces an unpredictable element to the legal proceedings.

Google has not commented on the offer, and the final ruling is expected within the month, leaving industry watchers keenly observing Perplexity’s maneuvers.

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5. White House’s Review of Smithsonian Museums

In a significant move to influence cultural institutions, the White House announced plans to conduct a comprehensive review of Smithsonian museum exhibitions, materials, and operations:

• [07:02] Alex Osolev transitions to this topic, highlighting efforts to align the museums with President Trump's vision of American history.

Rachel Wolf provides detailed coverage:

• [07:52] Rachel Wolf explains, "The White House is looking to do a pretty comprehensive review of everything from the little placards that are under exhibits in the Smithsonian museums to how curators come up with the ideas for the exhibits or even internal communication on their programming."

The objectives are clear:

• [09:11] Alex Osolev questions the administration's goals.
• [09:13] Rachel Wolf responds, "President Trump has really tried to put his own touch on some of the country's cultural institutions," focusing on "putting American history in a positive light."

The review process includes:

• Detailed walkthroughs of current exhibits.
• Interviews with curators to ensure alignment with the executive order aimed at "restoring truth and sanity to American history."
• A structured timeline with phased expectations over the next 120 days, targeting preparations for the 250th anniversary celebrations in 2026.

The Smithsonian Institution has yet to respond officially, though ongoing interactions suggest a collaborative yet scrutinizing approach.

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6. Potential $500 Million Settlement with Harvard University

The episode concludes with a high-stakes negotiation between Harvard University and the Trump administration, potentially resulting in a $500 million settlement:

• [10:50] Alex Osolev outlines the details, indicating that this would be the largest payout in the administration's campaign against universities accused of failing to curb anti-Semitism on campuses.

Key terms of the proposed settlement include:

• Harvard would allocate $500 million to workforce and vocational programs.
• In exchange, the administration would restore billions in frozen federal funds for research and other initiatives.
• The university must adhere to federal regulations on merit-based hiring and admissions, alongside protecting students' civil rights.
• Notably, there would be no external monitor appointed to oversee compliance.

Negotiations are ongoing, with a final agreement expected within the week. Harvard has declined to comment, and the settlement awaits President Trump's approval.

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Conclusion

This episode of WSJ What’s News delves into pivotal economic indicators, high-profile corporate maneuvers, and significant political interventions shaping the U.S. landscape. From inflation trends and market responses to contentious interactions between the presidency and financial institutions, alongside groundbreaking bids in the tech sector and cultural institution reviews, the podcast provides a comprehensive overview of the forces driving today’s headlines.

Produced by: Pierre Bienname
Supervising Producer: Michael Kosmides
Host: Alex Osolev

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Transcript

[Alex Osolov]

President Trump calls for Goldman Sachs to replace its chief economist over his past predictions on the impact of tariffs. Plus, AI startup Perplexity makes a bid for Google's Chrome browser. Can it succeed? And the White House's goal behind its review of the Smithsonian museums.

[Rachel Wolf]

They've really focused on any narrative that they deem to be partisan or anything that downplays their idea of American exceptionalism.

[Alex Osolov]

Tuesday, August 12, I'm Alex Osolev for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. Let's start with the latest data on US Inflation. New data from the Labor Department out today showed that consumer prices were up 2.7% in July from a year earlier. That was unchanged from June's gain of 2.7% and below the 2.8% rise that economists expected. But prices excluding food and energy categories, the so called core measure economists watch in an effort to better capture inflation's underlying trend, rose 3.1% over the last 12 months above forecasts for a 3% increase. For more on what this data means, I'm joined by WSJ economics reporter Rachel Wolf. Rachel, tariffs have been around for six months. I know that a lot of economists were watching this data to see if tariffs are having an effect, but what are we seeing here?

[Katherine Blunt]

So in June, we started to see the first signs that tariffs were beginning to get passed on to consumers. We saw a little more of that in July. So in categories that have a lot of imports like furniture, tires, pet products, there were larger than normal increases last month. That being said, it wasn't consistent across the board. So some economists thought that apparel, for instance, would skip bigger price increases by now because we import a lot of clothes. But so far it has not gone up as much as economists predicted. And a reason why could be that retailer is really stocked up in advance of tariffs. They might be sitting on a lot of supply. New car prices, same deal.

[Alex Osolov]

What else could be driving prices up besides tariffs?

[Katherine Blunt]

So economists were looking at goods for this inflation report. They were really expecting to see increases concentrated in some stuff. But really what we ended up seeing was that services like airline tickets and medical services and car maintenance went up more than predicted. For instance, airline tickets were up 4%. And what economists think that that is tied to is that the job market is still pretty strong and people are still spending money. And that means that it's not just tariffs having an effect, it's also people spending money.

[Alex Osolov]

That was WSJ economics reporter Rachel Wolff, thank you, Rachel.

[Katherine Blunt]

Thanks so much.

[Alex Osolov]

The latest consumer price report made investors more confident that the Federal Reserve will cut short term interest rates next month. Major U.S. indexes were up. The Nasdaq rose about 1.5%, hitting a new record its 19th of the year. The S&P 500 added about 1.1%, notching its 16th record so far this year. The Dow also advanced 1.1%. President Trump appeared to call for Goldman Sachs CEO David Solomon to replace the bank's top economist over his past predictions. Posting on social media today, the president said that Solomon should, quote, go out and get himself a new economist because the bank, he, he said, made a bad prediction a long time ago on the market and tariffs. The president asserted that tariffs haven't caused inflation or other issues for the US Economy. Trump appears to be referring to Jan Hatzius, the bank's longtime chief economist, though he didn't call him out by name or title. Hatzius and his team have been among the many economists who have predicted tariff policies would dent labor markets, cause higher inflation and slow US Economic growth. Trump also questioned whether Solomon himself should focus on just being a dj, a reference to the bank chief's former side gig. Goldman Sachs declined to comment on Trump's post. The White House didn't immediately respond to a request for comment. It's the president's latest broadside against executives he believes are undermining his goals. We're exclusively reporting that artificial intelligence startup Perplexity has made an unsolicited offer to purchase Google's Chrome Browser browser for $34.5 billion. Two subsidiaries of News Corp. Parent of the Journal, have sued Perplexity. Katherine Blunt covers Google's parent Alphabet for the Journal and is here to tell us more about the offer. Katherine, Perplexity is valued at about $18 billion. So can it afford this $34.5 billion price tag?

[Meredith McGraw]

Excellent question, right? The company says that it has commitments from several large funds, including VC funds, to back the entirety of the transaction. We have, we don't have any more detail than that at this point, but yeah, it is significantly more than the current valuation of the company.

[Alex Osolov]

It feels like not a coincidence that this unsolicited offer is coming at a time when Google Chrome might actually be spun off from the company, potentially. Last year, a US District judge ruled that Google illegally monopolized the search market and is expected to rule this month on how to restore competition. How does this offer fit in with this potential outcome?

[Meredith McGraw]

Yeah, it's not a coincidence at all. The Justice Department filed a suit against Google in 2020, and it's taken quite a while to get to this remedies phase of the trial. But the judge is considering a number of different options, considering limiting the company's ability to pay to beat the default browser on phones and other devices, requiring it to share data with rivals and as we're talking about now, potentially forcing a divestiture of Chrome to the company doesn't want to do any of the proposed remedies, at least not with the sweep that's been proposed by the Justice Department and in particular said that like selling Chrome or having to share data with rivals would be really harmful to the overall business.

[Alex Osolov]

A spokesperson for Google declined to comment on the offer. But how likely is a sale of Chrome to actually happen?

[Meredith McGraw]

Analysts have generally considered a forced sale of Chrome to be unlikely relative to the other potential remedies on the table. The judge did remark earlier this year during closing arguments at the trial that maybe this is a cleaner solution than some of the more complicated proposals on the table. But that doesn't really give us a great indication one way or the other how he's thinking about it. The ruling should come within the next few weeks. He has said he expects to release a ruling in August.

[Alex Osolov]

That was WSJ reporter Katherine Blunt. Thank you, Katherine.

[Meredith McGraw]

Thanks for having me.

[Alex Osolov]

Coming up, the White House vets the Smithsonian to ensure alignment with President Trump's view of American history. More after the break. In an exclusive, we're reporting that the White House plans to conduct a far reaching review of Smithsonian museum exhibitions, materials and operations ahead of America's 250th anniversary to ensure the museums align with President Trump's interpretation of American history. The that's according to a letter sent today by three top White House officials to Lonnie Bunch, the secretary of the Smithsonian Institution, and viewed by the Wall street journal. Meredith McGraw covers the White House for the Journal and is here now with more. Meredith, what will this review entail?

[Rachel Wolf]

So the White House is looking to do a pretty comprehensive review of everything from the little placards that are under exhibits in the Smithsonian museums to how curators come up with the ideas for the exhibits or even and internal communication on their programming. And it's all part of the White House's goals to try to reshape and re envision American history, especially ahead of the 250th anniversary next year. And so this team at the White House said that they're going to be going through their proposals. They asked the Smithsonian to tap representatives for each of their museums to work with them. And they're going to be doing walkthroughs of the current exhibits to take note of some of the themes and messaging and even connect some interviews with the curators as well, to make sure that everybody's on the same page and that they're mostly reflecting this executive order that the White House issued to, quote, restore truth and sanity to American history. And they've really focused on any sort of narrative that they deem to be partisan or anything that downplays their idea of American exceptionalism.

[Alex Osolov]

What is the Trump administration's goal with this review?

[Rachel Wolf]

President Trump has really tried to put his own touch on some of the country's cultural institutions, and that ranges from big universities to some of these museums. And the president really is focused on putting American history in a positive light and honed in on anything that they say has political influence or bias.

[Alex Osolov]

What does the Smithsonian have to say about it?

[Rachel Wolf]

So far, the Smithsonian hasn't had a response to the letter, but we know that Lonnie Bunch has been in contact with White House officials and has given them tours of the museums. And Vice President J.D. vance is among those who's on the board of regents that agreed to conduct reviews of some of the museums earlier this year.

[Alex Osolov]

And what happens next? Is there a timeline for this review?

[Rachel Wolf]

The letter pretty clearly outlines within the next 30 days, 75 days, 120 days, what their expectations are for the different museums in terms of the materials that they need to hand over to the White House for review or the materials that they need to come up with to celebrate the 250th annual anniversary. Some of the messaging or programming around that and the letter said that they hope to wrap up all of this in time for celebrations to begin in 2026.

[Alex Osolov]

That was WSJ reporter Meredith McGraw. Thanks, Meredith.

[Rachel Wolf]

Thank you.

[Alex Osolov]

And finally, Harvard University is nearing a $500 million settlement with the Trump administration. If it does happen, it would be the largest payout the White House has won so far in its campaign to punish universities that it says fail, stop anti Semitism on campus. A person familiar with the negotiations said that under the terms of the deal, which isn't final, the university would pay $500 million to workforce and vocational programs, not to the federal government. In turn, the Trump administration would restore billions in frozen federal dollars to the school for research and other programs. The administration wouldn't appoint a monitor to oversee Harvard's compliance with the deal. The university would pledge to continue to abide by federal regulations around merit based hiring and admissions, as well as protecting students civil rights. An agreement with Harvard isn't finalized and negotiations are continuing this week. President Trump has attacked Harvard repeatedly in the past few months and would need to approve a final deal. Harvard declined to comment. And that's what's news for this Tuesday afternoon. Today's show was produced by Pierre Bienname with supervising producer Michael Kosmides. I'm Alex Osoloff for the Wall Street Journal. We'll be back with a new show tomorrow morning.

[Katherine Blunt]

Thanks for listening.