Manus Could Get Tencent as Largest Shareholder After Meta Deal Collapse

Tencent is in talks to become Manus’ largest shareholder, the Financial Times reported Thursday. This follows Beijing’s order forcing Meta to unwind its $2 billion Manus acquisition. Tencent, alongside original investors ZhenFund and HSG, plans to buy back the AI startup at the same $2 billion valuation. The reversal marks a major shift in China’s AI investment landscape.

Why Meta’s Manus Deal Collapsed

Meta (NASDAQ: META) announced its acquisition of Manus in December 2025, paying north of $2 billion for the Singapore-based AI agent startup. Chinese regulators intervened in April 2026, citing national security concerns over foreign investment in AI technology with Chinese roots. Beijing ordered the deal fully unwound despite Manus’s Singapore incorporation.

Manus builds AI agents capable of autonomous task execution, going beyond simple prompt responses. The company’s core team relocated to Singapore in mid-2025 to build an overseas operating entity. Regulators determined that Chinese-founded companies fall within Beijing’s oversight regardless of where they’re technically domiciled.

Tencent Holdings is in discussions to become the largest shareholder in Manus, the Chinese agentic AI pioneer whose acquisition by Meta Platforms Inc. was ordered by Beijing to be unwound, the Financial Times reports https://t.co/fnGPKre0DO

— Bloomberg (@business) July 10, 2026

Tencent Leads the Buyback Consortium

Tencent backed Manus before Meta’s acquisition, alongside investment firm HSG, formerly known as Sequoia Capital China. Now Tencent is leading a consortium of Manus’ original Chinese investors to repurchase the company entirely. The planned buyback price matches Meta’s original $2 billion valuation exactly.

Key details of the buyback structure include:

• Tencent, ZhenFund, and HSG are the core investors leading the deal
• Meta is being made financially whole at its original purchase price
• Manus’ Chinese founders and Butterfly Effect parent company remain involved
• U.S. investor Benchmark has already collected its earlier acquisition proceeds

This buyback effectively returns strategic control of Manus to Chinese ownership.

Manus’ Revenue Surged During Meta’s Ownership

Manus’ annualized revenue stood at just $100 million before Meta’s acquisition closed. During the six-month integration period, supported by Meta’s traffic and advertising channels, revenue soared to between $400 million and $500 million. That represents a fourfold to fivefold increase in scale.

This growth changes the buyback’s economics substantially. Based on current revenue levels, Manus’ actual valuation now likely exceeds the original $2 billion acquisition price. Chinese investors are effectively reacquiring a fast-growing AI asset at what amounts to a discounted valuation relative to its current performance.

What This Means for Manus’ Future Plans

Manus launched a subscription product in July 2025, priced between $20 and $200 monthly. It targets both global consumers and business customers outside China. The company built an independent overseas payment system with self-financing capability. That system runs separately from Meta’s infrastructure, giving Manus real operational independence.

Manus’ co-founders have also discussed raising roughly $1 billion to support a future Hong Kong listing. Hong Kong has seen a wave of AI IPOs recently from Chinese firms, including MiniMax and Zhipu. A joint-venture ownership model, mixing domestic and international capital, could help clear compliance hurdles for such a listing.

• Subscription pricing ranges from $20 to $200 per month across tiers.
• The overseas payment system runs independently of Meta’s platform.
• Co-founders are targeting close to $1 billion in fresh funding.
• MiniMax and Zhipu have already completed similar AI listings in Hong Kong.
• A joint-venture structure may satisfy China’s foreign capital rules.

Broader Implications for Cross-Border AI Deals

This reversal signals tightening Chinese oversight over AI companies with domestic origins, regardless of overseas incorporation. Beijing has also expanded travel restrictions, requiring government clearance for executives at firms like Moonshot AI, StepFun, and ByteDance before international trips. Meta Platforms absorbs a rare high-profile deal failure, despite recovering its full investment.

For Chinese AI startups, this case narrows the path toward accepting large foreign acquisition offers going forward. Investors on both sides of the Pacific will likely scrutinize similar cross-border AI deals more closely after this unwinding.

Final Thoughts

Tencent’s move to become Manus’ largest shareholder closes a turbulent chapter in Meta’s AI acquisition strategy. The deal’s collapse highlights how geopolitical concerns can override deal terms already finalized months earlier. Manus now returns to Chinese ownership with stronger revenue, setting up a potential Hong Kong listing as its next major milestone.

Disclaimer:

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