A roughly $1 billion raise from outside investors is among the options being weighed by Manus co-founders Xiao Hong, Ji Yichao, and Zhang Tao as they work to comply with Beijing's order to undo Meta $META's acquisition of the startup, according to Bloomberg. Any gap in the financing could be filled with personal funds from the founders themselves, Bloomberg said.
The target valuation for the round would be set at or above the price Meta paid — more than $2 billion — according to Reuters. A successful buyback could eventually lead to a Hong Kong IPO, with Manus reorganized as a Chinese joint venture alongside whatever investors come aboard, added Bloomberg.
The plans remain early-stage. According to Bloomberg's unnamed sources, no firm decisions have been made and the valuation question has yet to be settled — leaving open the possibility that the founders walk away entirely. Compounding the difficulty is the question of what a new owner would actually receive: Manus's technology has been woven into Meta's infrastructure, and no clear path exists for separating it.
The projected revenue figure — roughly $1 billion for the current year — has been enough to attract interest from at least some potential backers.
China's National Development and Reform Commission ordered Meta to unwind the acquisition last month, citing unspecified laws and regulations. The directive came after Beijing's Ministry of Commerce launched a review in January to examine whether the deal violated rules on foreign investment, technology transfers, or export controls. Meta had said the transaction met all legal requirements.
The Manus deal drew scrutiny in part because the company, though incorporated in Singapore, was founded in China — a structure critics characterized as an attempt to place the transaction beyond Beijing's regulatory reach. The NDRC's ruling made clear that offshore incorporation does not insulate a deal when the underlying technology and talent originated in China.
The buyback faces major practical challenges. The money has already been transferred, Manus employees have joined Meta, and early investors have sold their shares. Bloomberg points out that reversing a deal of this size so soon after closing is almost unheard of in the industry.
Manus's main product is a set of AI agents that can work with minimal human supervision, handling tasks that would normally need a dedicated employee. Meta announced the acquisition in December, saying it would help the company reach its AI goals.
Meta and Manus did not respond to requests for comment.