Manus AI founders seek ~$1B financing to buy back Meta stake after China order

Manus AI’s founders are discussing a roughly $1 billion financing to help unwind Meta Platforms’ acquisition of the company after China’s top economic planner ordered the deal reversed, according to Bloomberg and a Chinese regulatory notice. The National Development and Reform Commission’s foreign investment security review office said on April 27 that it had issued a decision prohibiting the foreign acquisition of Manus and requiring the parties to cancel the transaction. Bloomberg reported on May 21 that the startup’s three founders — Xiao Hong, Ji Yichao and Zhang Tao — were in talks over a funding round tied to buying back the company from Meta. Meta has not publicly announced a reversal of the deal. ### Which Chinese order set this process in motion? China’s National Development and Reform Commission said in a notice dated April 27 that its foreign investment security review mechanism had made a “prohibited investment” decision on the foreign acquisition of Manus and required the parties to revoke the transaction. The notice did not name Meta in the excerpt available on the regulator’s site, but it identified the target as Manus. The April 27 notice is the clearest public regulatory marker in the case. South China Morning Post had previously reported that Meta’s multibillion-dollar purchase of Manus had stirred debate in China’s technology sector after the U.S. company acquired the Chinese-founded AI startup. ### Who is trying to finance the buyback? (zfxxgk.ndrc.gov.cn) Bloomberg reported on May 21 that Manus’s three founders — Xiao Hong, Ji Yichao and Zhang Tao — were in discussions about a funding round that would at least match the $2 billion Meta paid for the company. Bloomberg said the founders could also contribute some of their own money to complete the transaction. (scmp.com) The same report said the financing under discussion was about $1 billion. That would leave the rest of the repurchase price to be covered through other founder funding or deal structuring, according to Bloomberg’s account of the talks. ### What public evidence ties Meta to Manus now? Meta’s own help pages show that Manus AI has been integrated into Meta’s account system for some users. (bloomberg.com) A Meta help page updated about 10 weeks ago says joining Manus AI with a Facebook account connects Manus to Meta’s Accounts Center and shares user information from Accounts Center with Manus for personalized experiences. That help-page language does not address ownership, the Chinese review, or any unwinding process. It does show that Meta and Manus built at least one consumer-facing connection that remained publicly documented as of this week. ### What structure are the founders considering after a buyback? Bloomberg reported that the founders were considering restructuring Manus as a China-based joint venture after repurchasing the company. (meta.com) The report also said the company could pursue a Hong Kong initial public offering later. The proposed structure would follow the Chinese regulator’s order blocking the foreign acquisition. (meta.com) Neither the NDRC notice nor Meta’s public help materials set out a timetable for any joint venture or listing plan. ### What remains unconfirmed in public filings? Meta has not published, in the sources reviewed, a statement confirming a completed unwind, a revised ownership structure, or terms for any resale of Manus. (bloomberg.com) The available NDRC notice confirms a prohibition decision and an instruction to cancel the deal, while Bloomberg provides the details of the founders’ financing discussions. (zfxxgk.ndrc.gov.cn) Bloomberg said the discussions involved Xiao, Ji and Zhang and centered on a valuation at least equal to the reported $2 billion acquisition price. Any next formal step would likely appear in a company statement, a Chinese regulatory update, or future Hong Kong listing documents if the IPO plan advances. (bloomberg.com) (zfxxgk.ndrc.gov.cn)