TLDR
- Manus co-founders are exploring ways to unwind Meta’s $2 billion-plus acquisition of the AI startup
- They are looking to raise around $1 billion from external investors to buy the company back
- The funding round would value Manus at least at what Meta originally paid
- Founders may contribute their own capital to cover any funding gap
- The plan could lead to a Chinese joint venture and a Hong Kong IPO
Meta acquired Singapore-based Manus in late December to expand AI capabilities across its platforms. The deal was worth more than $2 billion.
MANUS MAY RAISE $1B TO BUY ITSELF BACK FROM META
Bloomberg reports Manus founders are exploring a raise of about $1B to help unwind Meta’s $2B acquisition.
The agentic AI startup could be restructured as a Chinese joint venture before a possible Hong Kong IPO.
The proposed… pic.twitter.com/iMFREwtrIM
— Wall St Engine (@wallstengine) May 21, 2026
China launched a review shortly after, looking into whether the deal broke investment rules. Beijing also barred two of the three Manus co-founders from leaving the country.
Last month, Beijing ordered Meta to unwind the acquisition. The order came as China tightened its scrutiny of U.S. investments in domestic tech companies.
Now the Manus founders are working on a plan to comply with that order.
Founders Explore Buyback Options
The three co-founders — Xiao Hong, Ji Yichao, and Zhang Tao — are in discussions about raising roughly $1 billion from outside investors, according to Bloomberg, citing people familiar with the matter.
The funding round would be set at a valuation that at least matches what Meta paid for the company. The founders may also put in their own money to cover any shortfall.
Reuters was not able to independently verify the Bloomberg report. Manus did not respond to a request for comment.
What Manus Does
Manus builds general-purpose AI agents designed to act as digital employees. These agents can carry out tasks like research and automation with little human involvement.
The company was founded in Singapore but has Chinese roots. Its acquisition by Meta drew attention from Beijing given the nature of the technology involved.
A Path to an IPO
If the buyback goes ahead, Manus could become a Chinese joint venture with the new backers. One source told Bloomberg that a Hong Kong initial public offering could follow.
That would mark a major shift for the company, moving it from U.S. ownership back under a China-linked structure.
Meta has not made any public statement on the buyback discussions. The company originally bought Manus to strengthen AI integration across its products.
The situation reflects wider tensions between the U.S. and China over technology investment. Beijing has been increasing oversight of foreign deals involving advanced AI firms.
No timeline has been confirmed for the fundraising or any potential IPO. The discussions are still at an early stage, according to the Bloomberg report.
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