TLDR
- The co-founders of Manus are working to reverse Meta‘s acquisition of their AI company valued at over $2 billion
- Approximately $1 billion is being sought from outside investors to facilitate the buyback
- The proposed financing values Manus at a minimum of Meta’s original purchase price
- Personal capital from the founders may fill any remaining funding shortfall
- A Chinese joint venture structure and Hong Kong stock listing could emerge from the transaction
In late December, [[LINK_START_0]]Meta[[LINK_END_0]] completed its purchase of Singapore-registered Manus, paying more than $2 billion to enhance AI functionality throughout its ecosystem of products.
Chinese authorities initiated an investigation soon afterward to determine if the transaction violated domestic investment regulations. Beijing simultaneously prevented two of Manus’s three co-founders from departing Chinese territory.
Beijing issued a directive last month requiring Meta to reverse the acquisition. This decision arrived amid China’s heightened examination of American capital flowing into Chinese technology enterprises.
The Manus co-founders are now developing a strategy to fulfill Beijing’s requirement.
Co-Founders Pursue Repurchase Strategy
According to Bloomberg sources with knowledge of the situation, the three co-founders—Xiao Hong, Ji Yichao, and Zhang Tao—are negotiating to secure approximately $1 billion from external financial backers.
The financing would establish a company valuation no lower than what Meta originally paid. To bridge any funding deficit, the co-founders may contribute personal funds.
Reuters could not independently confirm Bloomberg’s reporting. Manus has not responded to inquiries seeking comment.
Manus’s Core Technology
The company develops general-purpose AI agents that function as autonomous digital workers. These intelligent systems perform tasks including research operations and workflow automation requiring minimal human supervision.
While headquartered in Singapore, Manus maintains Chinese origins. Meta’s acquisition attracted regulatory scrutiny from Beijing due to the sensitive nature of the underlying technology.
Potential Public Offering Route
Should the repurchase materialize, Manus may transition into a Chinese joint venture alongside its new financial partners. Bloomberg’s sources indicated that a Hong Kong stock market debut could subsequently occur.
This would represent a dramatic transformation, shifting the company from American control back to a China-affiliated corporate framework.
Meta has remained silent regarding the buyback negotiations. The technology giant originally acquired Manus to bolster AI capabilities across its platform offerings.
The circumstances illustrate escalating friction between Washington and Beijing concerning technology sector investments. Chinese regulators have intensified monitoring of international transactions involving sophisticated AI companies.
Neither a timeline for the fundraising effort nor any prospective public listing has been established. Bloomberg’s report indicates the discussions remain in preliminary phases.
