Manus Investors Seek $2 Billion Buyback From Meta After Beijing Order
Investors in AI startup Manus are exploring a plan to repurchase the company from Meta at the same $2 billion valuation used in the original acquisition. The effort follows an order from Chinese authorities to reverse the deal on national security grounds, creating a rare case of a major cross-border technology acquisition being unwound.
Beijing Forces Reversal of Acquisition
Meta acquired Manus, a Singapore-based AI company founded by Chinese entrepreneurs, in December 2025 for approximately $2 billion. Initially, many viewed the transaction as a model for Chinese AI startups expanding internationally. However, concerns quickly emerged over technology developed while Manus operated in China.
As a result, China’s National Development and Reform Commission launched an investigation. Regulators argued that certain technologies could fall under national security and export control regulations. By April, authorities formally instructed both companies to withdraw from the agreement.
Consequently, Meta began implementing the separation in June. The company halted data sharing, completed an operational split, and established a firewall between the organizations. Additionally, an internal memo indicated that the Manus platform would be phased out while existing projects moved to Meta’s internal systems.
Investors Explore Buyback Strategy
According to reports, early investors including Tencent, ZhenFund, and Benchmark are evaluating plans to raise roughly $1 billion for the repurchase. Meanwhile, Manus co-founders Xiao Hong, Ji Yichao, and Zhang Tao may contribute capital to complete the transaction.
If the buyback moves forward, investors could restructure Manus as a Chinese joint venture. Subsequently, the company may pursue a public listing in Hong Kong. Interest remains strong because Manus is projected to generate around $1 billion in revenue this year.
Furthermore, several investors believe the company retains significant long-term growth potential despite the regulatory setback.
Future Remains Uncertain
Although previous investors have already received proceeds from the original acquisition, they have indicated a willingness to cooperate with the unwinding process. At the same time, discussions surrounding Manus’s future valuation continue.
Operational challenges also remain. Manus employees have already relocated to Meta’s offices in Singapore, which could complicate any separation process. Until investors secure financing commitments and finalize a deal structure, Manus will continue operating under Meta’s firewall arrangement.
Meanwhile, the company will gradually separate its technology assets and customer relationships from Meta’s infrastructure as negotiations continue.
