Manus investors plan $2B buyback from Meta after Beijing order

Manus Investors Plan $2 Billion Buyback of AI Startup From Meta

The original Chinese investors in AI startup Manus are planning to repurchase the company from Meta at the same $2 billion price the social media giant paid for it, according to a report by The Information published Thursday. The buyback effort, driven by a Chinese government order to reverse the deal on national security grounds, marks a rare forced unwinding of a major cross-border tech acquisition.investing

A Deal Unraveled by Beijing

Meta acquired Manus — a Singapore-based, Chinese-founded agentic AI company — in December 2025 for roughly $2 billion. The deal was initially framed as a template for Chinese AI startups going global. But within weeks, China’s National Development and Reform Commission launched an investigation, citing concerns that technology developed while Manus operated in China fell under national security and export control rules.wsj

By April, Beijing had formally ordered both parties to withdraw from the agreement. Meta began complying in June, completing an operational split, halting data sharing, and erecting a firewall between the two companies. An internal memo obtained by Bloomberg confirmed Meta was “sunsetting” the Manus platform, directing employees to migrate existing projects onto Meta’s own systems.yahoo

Investors Mobilize for a Buyback

According to The Information’s report, early backers including Tencent, ZhenFund, and Benchmark are exploring raising around $1 billion to fund the repurchase at the original $2 billion valuation. The three Manus co-founders — Xiao Hong, Ji Yichao, and Zhang Tao — may contribute their own funds to cover the remainder.bloomberg

If the buyback proceeds, the next step would involve restructuring Manus as a Chinese joint venture, potentially paving the way for an initial public offering in Hong Kong. Some investors have expressed interest in joining the repurchase given that Manus was projected to generate about $1 billion in revenue this year.yahoo

An Uncertain Path Forward

Previous investors including Tencent, HSG (formerly Sequoia Capital China), and ZhenFund had already received their proceeds from the original acquisition, but have indicated they will cooperate with the unwinding process, according to The Wall Street Journal. Benchmark, the California-based venture firm that led Manus’s $75 million funding round in April 2025, has also received its payout.techcrunch

The plans remain in early stages, and discussions regarding Manus’s valuation are ongoing. Manus staff have already moved into Meta’s offices in Singapore, adding logistical complexity to any separation. Until financing commitments are finalized, Manus will continue operating under Meta’s imposed firewall while its technology and customer relationships decouple from the parent company’s infrastructure.theroboticsmedia