TLDR
- Tencent is negotiating to become Manus’ primary shareholder following Beijing’s directive for Meta to reverse its $2 billion purchase.
- In April 2026, Chinese authorities intervened, raising national security issues regarding foreign ownership of AI companies with Chinese origins.
- A consortium led by Tencent, together with initial backers ZhenFund and HSG, intends to repurchase Manus from Meta at a minimum valuation of $2 billion.
- Meta revealed the Manus purchase in December 2025 to enhance its autonomous AI capabilities but has subsequently segregated operations and terminated data exchanges.
- Chinese state media previously celebrated Manus as a potential “next DeepSeek” following its launch of what was billed as the world’s first general AI agent.
In December 2025, Meta acquired AI startup Manus for more than $2 billion. Half a year later, Chinese authorities demanded the company be returned.
According to Reuters sources familiar with the negotiations, Tencent (0700.HK) is currently in discussions to become the primary stakeholder in Manus. Tencent’s shares declined 2% following Friday’s report.
Tencent Holdings Limited, TCTZF
The proposed transaction would establish Manus’ valuation at a minimum of $2 billion — matching Meta’s original purchase price. Tencent is spearheading a group of investors that includes Manus’ founding investors, ZhenFund and HSG.
Meta, Tencent, Manus, and the participating investment firms have not yet provided statements regarding the matter.
Manus specializes in creating AI agents capable of executing tasks autonomously with limited human oversight. Meta’s acquisition of the Singapore-registered company aimed to accelerate its autonomous AI initiatives.
The transaction collapsed rapidly. Chinese regulatory authorities initiated an investigation in April 2026 to determine whether the deal breached investment regulations, emphasizing national security implications.
Beijing’s concern focused on Manus’ Chinese founders and Chinese financial backing — despite its Singapore incorporation. The offshore corporate arrangement, previously considered a possible regulatory workaround, proved ineffective.
Following the April directive, Meta separated Manus operationally and discontinued all data transfers between the entities, according to Bloomberg News reports from last month.
What Tencent Gets Out of This
Tencent had previously invested in Manus alongside HongShan before Meta’s acquisition. The Tencent-led repurchase effectively restores the startup to its prior investors, at the same price point, with regulatory approval.
For Tencent, the arrangement appears advantageous. They’re acquiring a company they previously understood and supported, without paying above the established valuation.
Manus represented significant value. Chinese state-controlled media praised the company as a potential successor to DeepSeek after unveiling what it described as the world’s first general AI agent — technology designed not merely to answer queries, but to independently execute complex tasks.
What Meta Loses
Meta will likely recoup its investment through the buyback arrangement, minimizing direct financial losses. However, the positive aspects end there.
Meta sought cutting-edge AI agent capabilities and an expert team to develop additional innovations. The company is departing with neither asset.
The mandated reversal also underscores the regulatory exposure inherent in international AI transactions involving Chinese-founded enterprises, irrespective of their legal incorporation location.
Sources indicate that the unwinding process may include limitations on Manus’ founding team, potentially involving travel restrictions during the ongoing regulatory examination.
The Financial Times initially disclosed Tencent’s participation earlier Friday.
Manus relocated its headquarters from China to Singapore within the past year. This strategic move ultimately failed to protect the company — or Meta’s stake — from Beijing’s regulatory authority.
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