Perplexity AI just made a $34.5b unsolicited offer for Google’s Chrome browser, attempting to capitalize on the pending antitrust ruling that could force Google to divest its browser business.
Comparing Chrome’s economics to Google’s existing Safari deal reveals why $34.5b undervalues the browser.
Google pays Apple $18-20b annually to remain Safari’s default search engine¹, serving approximately 850m users². This translates to $21 per user per year.
The Perplexity offer values Chrome at $32b, which is $9 per user per year for its 3.5b users³.
If Chrome users commanded the same terms as the Google/Apple Safari deal, the browser’s annual revenue potential would exceed $73b.
| Browser | Users (m) | Annual Revenue ($b) | Revenue per User ($) | Market Cap 5x ($b) | Market Cap 6x ($b) |
|---|---|---|---|---|---|
| Safari | 850 | 18 | 21 | 90 | 108 |
| Chrome (Perplexity Offer) | 3,500 | 32 | 9 | 172 | 207 |
| Chrome (Safari Parity) | 3,500 | 73 | 21 | 367 | 441 |
| Chrome (Premium Scenario) | 3,500 | 105 | 30 | 525 | 630 |
This data is based on public estimates but is an approximation.
This assumes that Google would pay a new owner of Chrome a similar scaled fee for the default search placement. Given a 5x to 6x market cap-to-revenue multiple, Chrome is worth somewhere between $172b and $630b, a far cry from the $34.5b offer.
Chrome dominates the market with 65% share⁴, compared to Safari’s 18%. A divestment would throw the search ads market into upheaval. The value of keeping advertiser budgets is hard to overstate for Google’s market cap & position in the ads ecosystem.
If forced to sell Chrome, Google would face an existential choice. Pay whatever it takes to remain the default search engine, or watch competitors turn its most valuable distribution channel into a cudgel against it.
How much is that worth? A significant premium to a simple revenue multiple.
¹ Bloomberg: Google’s Payments to Apple Reached $20 Billion in 2022
² ZipDo: Essential Apple Safari Statistics In 2024