Meta recovers about $1bn via founder buyback after China blocked Manus deal

Meta Platforms is set to recover about $1 billion through a proposed founder-led buyback of Manus after Chinese authorities ordered the unwinding of the social media company’s $2 billion-plus acquisition of the Singapore-based AI startup, according to Bloomberg News. The report, published on May 21, said Manus co-founders were exploring a fresh capital raise from outside investors to buy back the Chinese-founded business after Beijing blocked the takeover. China’s National Development and Reform Commission said on April 27 that the transaction should be withdrawn in accordance with “laws and regulations,” without detailing the basis for the decision. ### How did Meta end up trying to unwind a deal it had already announced? Meta announced the Manus acquisition in December 2025 as part of its push into AI agents, a fast-growing category of software designed to carry out tasks such as research, coding and automation. CNBC reported that Manus had been founded in China before relocating to Singapore, and that Beijing opened a probe in January into whether the transaction complied with Chinese rules on export controls, technology transfers and overseas investment. (bloomberg.com) April 27 became the decisive date. China’s state planner said then that foreign investment in Manus had been prohibited under applicable laws and asked the parties to withdraw the acquisition transaction. Reuters, cited by The Straits Times, reported that the deal had been valued at more than $2 billion and had already been largely completed. (cnbc.com) ### Why are Manus’s founders now raising money themselves? Bloomberg reported on May 21 that founders including Xiao Hong and Ji Yichao were weighing a roughly $1 billion raise from external backers to repurchase the company from Meta. The same report said the structure would allow Meta to recover about half of the original purchase price while giving the founders a path to regain control of Manus. (straitstimes.com) The Next Web, citing the Bloomberg report, said the contemplated financing would be used to comply with Beijing’s order to unwind the acquisition. Reuters separately summarized the Bloomberg report by saying Manus co-founders were exploring ways to comply with China’s order to reverse Meta’s purchase. (bloomberg.com) ### What role did Chinese regulators play beyond blocking the transaction? Chinese authorities had already tightened pressure on Manus’s leadership before the April 27 block. The Financial Times reported in March, and Reuters later summarized, that co-founders Xiao Hong and Ji Yichao had been barred from leaving China while regulators reviewed whether the Meta acquisition violated investment rules. (thenextweb.com) Tech in Asia, citing Reuters and the FT, said the two founders had been restricted from travel as the review deepened. CNBC reported in March that Beijing’s review unsettled founders and investors who had used a “Singapore-washing” model, in which Chinese startups shifted headquarters or assets offshore to reduce scrutiny from both Beijing and Washington. That review centered on whether Manus’s move to Singapore and subsequent sale to Meta had bypassed Chinese controls on sensitive technology and capital. (finance.yahoo.com) ### What happens to Manus after the buyback? Bloomberg reported that if the founders proceed, Manus could be set up as a Chinese joint venture with new backers ahead of a Hong Kong initial public offering. That would give the company a new ownership structure after the Meta unwind, though Bloomberg described the talks as private deliberations rather than a finalized plan. (cnbc.com) The next formal milestone remains any financing round that would fund the repurchase. As of May 22, Reuters’ summary of the Bloomberg report and other cited coverage did not identify investors, pricing terms or a filing date for a Hong Kong listing. (money.usnews.com) (bloomberg.com)