Tencent to Lead Reacquisition of Manus after Contract Termination with Meta... Foreseeing Becoming Largest Shareholder

Tencent is advancing plans to become the largest shareholder of AI agent startup Manus. Following China's government order to revoke Meta's $2 billion acquisition offer, existing investors are negotiating renewed buyouts to restructure the company. The Financial Times reported that Tencent, previous funds, HSG, and Manus' management are discussing reverting to the original $2 billion valuation. If successful, Tencent would secure the largest stake without holding a majority. Some existing investors may opt out. Manus will remain independently operated from Singapore, with investors anticipating potential Hong Kong listing after growth. However, structural reforms may be required for Hong Kong listing. Manus' annual recurring revenue (ARR) approached $500 million in 2024, significantly higher than its 2025 acquisition valuation. Uncertainty remains about sustaining growth post-separation from Meta. The deal follows China's directive to revoke Meta's acquisition, which it viewed as circumventing technology transfer restrictions. The Chinese government's April order to revoke the acquisition and restrict the founders' movements highlights broader policy to retain AI technologies and talent domestically.