UK Approves TikTok Parent ByteDance's Relocation To London Amid Microsoft Buyout Talks: Report
TikTok parent company ByteDance's bid to relocate from Beijing to London has received the approval of the United Kingdom government, Reuters reported Monday, citing local media.
What Happened: The agreement between the U.K. authorities and the owner of the short-form video app could be announced as soon as Monday, according to local reports.
British publication The Sun claimed the country's prime minister, Boris Johnson, is "risking a row" with his United States counterpart, President Donald Trump, by giving nod to the relocation. Trump had previously come out against the acquisition and wanted to ban the video app.
Why It Matters: The move comes at a time when Microsoft Corporation (NASDAQ: MSFT) is keenly pursuing a deal to purchase TikTok. The technology veteran said it expects to close talks surrounding the acquisition with ByteDance by September 15.
Trump has agreed to allow the Redmond, Washington-based software giant to discuss buying TikTok on the condition that such negotiations are completed within 45 days, according to Reuters.
TikTok is under scrutiny in the U.S. over privacy-related matters and has over 80 million active users in the country.
The acquisition of TikTok will give Microsoft a chance to emerge as a significant competitor of social media companies such as Facebook Inc (NASDAQ: FB) and Snap Inc (NYSE: SNAP).
Price Action: Microsoft shares traded 2.05% higher at $209.22 in the pre-market session Monday.
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