Manus Founders Seek $1B to Unwind Meta’s $2B AI Acquisition
META•Meta's Manus founders plan a $1 billion fundraising to repurchase the AI startup after Beijing ordered reversal of Meta's $2 billion acquisition. The buyback would set Manus's valuation at or above the original purchase price and could pave the way for a Hong Kong IPO as a Chinese joint venture.
1. Acquisition and Regulatory Order
Beijing's National Development and Reform Commission directed Meta to unwind its December purchase of Manus, a Singapore-incorporated AI startup founded in China, citing foreign investment and technology transfer regulations. The move follows a Commerce Ministry review that flagged the deal for potentially breaching local rules on technology origin and control.
2. Buyback Financing Plan
Manus co-founders Xiao Hong, Ji Yichao and Zhang Tao are exploring a $1 billion capital raise from external investors—backed by potential personal funding—to meet or exceed the initial $2 billion purchase price. The founders aim to re-establish Manus as a stand-alone enterprise under a valuation at or above Meta's original bid.
3. Separation and IPO Challenges
Integrating Manus's AI agents into Meta's infrastructure complicates disentanglement, as technology and employees have been woven into Meta systems. If successful, the buyback could lead to a reorganization as a Chinese joint venture with a possible Hong Kong initial public offering.
