Manus returns to independence after China blocks Meta acquisition

Manus returns to independence after China blocks Meta acquisition

Tue, August 11, 2026 at 8:01 PM GMT+3 2 min read

• META +1.66%

Manus announced Tuesday that it will resume operating as an independent company, as it works to comply with Beijing's order to reverse Meta's $2 billion acquisition of the startup.

Manus is an AI agent startup that originated in China in 2022 and later moved its base to Singapore, according to CNBC. Meta announced the acquisition of Manus in December 2025. China's National Development and Reform Commission issued a directive in April ordering the parties to unwind the transaction, citing the country's rules on foreign investment.

As part of the separation, some Manus users will have data deleted. Specifically, for users in certain jurisdictions, any data created from December 29, 2025 onward — the day the acquisition closed — is slated for removal. "This is part of our separation from Meta; we must take this step to comply with regulatory requirements in specific parts of the world," the company said.

Affected users have a backup window open through 7:59 p.m. EDT on August 22. Data will be deleted August 23 through August 24, and users will be able to restore their backed-up data starting August 25. Manus said it will not charge affected users during the backup period.

The unwinding process has been underway for months. Meta cut off Manus staff from its internal data systems and barred Meta employees from using Manus tools, in steps toward operational separation. China's NDRC order made clear that offshore incorporation does not shield a deal from Beijing's authority when the underlying technology and talent originated in China — a structure critics had called "Singapore washing." Co-founders Xiao Hong and Ji Yichao were required to appear before Chinese officials in Beijing in March and have since been prohibited from traveling abroad.

The financial mechanics of the reversal have been complex. Manus co-founders Xiao Hong, Ji Yichao, and Zhang Tao explored raising roughly $1 billion from outside investors to fund a buyback at a valuation matching the $2 billion Meta paid, with a potential Hong Kong IPO as a longer-term outcome. Those discussions were described as early-stage, with no firm decisions made. Tencent, the Chinese gaming and internet giant, is in discussions that could give it a controlling stake in Manus, according to Reuters.

According to CNBC, Meta's strategy had been to integrate Manus capabilities across its consumer and enterprise offerings as it works to monetize AI through a subscription model.