A major tech deal is running in reverse. Meta paid $2 billion for Manus, then Beijing said no. Now Manus's founders are trying to raise about $1 billion to buy it back and turn the company into a Hong Kong listing instead.
The three founders - Xiao Hong, Ji Yichao and Zhang Tao - are in early talks with outside investors. They're looking at a deal that values Manus at least at the $2 billion Meta paid, with the founders ready to put in their own money to close the gap.
The plan, if it moves ahead, is to set Manus up as a Chinese joint venture with those new backers. After that, they'd aim for an initial public offering in Hong Kong.
Every weekday, Market Briefs breaks down deals like this in five minutes - and throws in a free investing masterclass when you join.
Manus was founded in China. The team moved its headquarters and key staff to Singapore in 2025, which made it easier for Meta to step in and buy.
The deal was announced in December. By April, Beijing told them to pull it back.
Regulators have been clamping down on Chinese AI talent flowing to US companies, recently barring firms like ByteDance from taking American capital without approval. That clampdown also showed up in ByteDance bumping its 2026 AI spending budget to $30 billion as it builds more in-house.
Reversing a closed deal months after the fact is almost never done, and the move shows how seriously China is treating this.
Manus staff have already moved into Meta offices in Singapore, capital has changed hands, and Tencent, ZhenFund and HSG have all received their payouts. That makes the practical work of an unwind hard.
New owners would also have to pull Manus's AI tech back out of Meta's systems, where it's already being woven in. Investors are still interested though, since Manus is projected to bring in roughly $1 billion in revenue this year, making it a real business worth buying back at the right price.
The talks are still early, and the founders may walk away. But the bigger signal is set - Beijing is willing to break up done deals to keep AI talent and tech inside China.
Investors looking at any US-China tech crossover should price that in.
To follow stories like this every morning, grab a free spot on Market Briefs - and you'll also get a 45-minute investing course as a bonus.
