Washington: Early investors in artificial intelligence startup Manus are reportedly planning to buy back the company from Meta in a deal valued at around $2 billion, according to a report by The Information.
The move comes after Chinese authorities ordered Meta to unwind its acquisition of the company.
Planned buyback
The report said key early investors, including HSG, ZhenFund and Tencent, are involved in the proposed buyback, with some considering raising new capital to acquire Meta’s stake.
Meta acquired Manus — a Singapore-based AI firm specialising in autonomous AI agents — as part of efforts to strengthen its capabilities in next-generation artificial intelligence systems.
Regulatory pressure
The potential reversal of the deal follows a directive from China earlier this year requiring Meta to divest its holding, reflecting tighter controls on international ownership of strategically sensitive technology companies.
In response, Meta has reportedly already separated operations from Manus and halted data-sharing activities between the two entities.
Strong growth since acquisition
Despite the regulatory challenges, Manus has experienced rapid growth following its acquisition. According to the report, the company’s annualised revenue run rate has increased significantly to between $400 million and $500 million, up from approximately $100 million at the time of the deal.
Future plans
The company is also said to be exploring a restructuring of its business model, potentially transitioning into a China-based joint venture and preparing for a future listing on the Hong Kong stock exchange.
However, some early investors are not participating in the buyback process, according to the report.
Unconfirmed details
Reuters noted it could not independently verify the report, and the companies involved have not publicly commented on the matter.
Broader context
The development highlights ongoing tensions over technology ownership and regulation, particularly in the artificial intelligence sector, where governments are increasingly focused on data security and strategic control.
The outcome of the proposed buyback could have wider implications for cross-border investments in emerging technologies, especially involving major global and Chinese technology players.