Meta to Unwind $2B Manus Acquisition After China Blocks Deal on National Security Grounds

Gate News message, April 28 — Meta is preparing to reverse its more than $2 billion acquisition of Manus, a Singapore-based AI startup, after China blocked the deal on national security grounds. China’s commerce ministry opened an investigation into the sale in January, days after Meta completed the purchase.

Beijing ordered the companies to restore Manus’s Chinese assets to their original state within several weeks, including removing data or technology transferred from Meta, and warned that penalties could follow if the deal cannot be fully unwound. Investors in Manus, including venture capital firm Benchmark, have already received returns, while former Asian backers such as Tencent, HSG, and ZhenFund may cooperate in the reversal.

Manus began in China before relocating its headquarters to Singapore. Chinese regulators examined whether transferring Manus staff and AI technology from China to Singapore required an export license before the sale to Meta, reflecting Beijing’s treatment of homegrown AI talent and technology as national security assets.