Chinese authorities have reportedly ordered Meta to reverse its $2 billion purchase of AI startup Manus, and Tencent is now moving to buy the company. A consortium led by Tencent is discussing a deal worth no less than $2 billion that would leave it as Manus's largest shareholder.
Meta is reportedly being forced to unwind its $2 billion acquisition of AI startup Manus after intervention from Chinese authorities, according to a Thursday media report. The reversal clears a path for Tencent Holdings to pursue a controlling stake in the startup.
Tencent steps into the opening
Tencent is in talks with Manus and several existing investors, including ZhenFund and HSG, to acquire the company after Beijing directed Meta to reverse the transaction. The group aims to repurchase Manus from Meta following the regulatory order.
The proposed consortium is considering a deal valued at no less than $2 billion, which would make Tencent the startup's largest shareholder if completed.
Regulation shapes the deal
The reported move comes as competition for artificial intelligence assets intensifies among major technology companies, particularly in China. Regulatory scrutiny remains a key factor in cross-border transactions there.
Beijing's order requires Meta to reverse the transaction, and Tencent's consortium is now working to repurchase Manus at the reported valuation.
Source: GuruFocus (snippet-based)
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