Tencent Eyes Largest Individual Stake in Manus As Meta Deal Is Set to Unwind

Chinese technology group Tencent Holdings is in talks to become the largest shareholder in Singapore-based AI startup Manus, as its former backers discuss buying the company back from Facebook parent Meta Platforms following Beijing’s order to reverse the $2 Bn acquisition.

Reuters confirmed the negotiations through two people with knowledge of the matter after the Financial Times first reported the talks.

Most of Manus‘s former investors, including Tencent, Chinese venture firm ZhenFund and HSG, the investment firm formerly known as Sequoia Capital China, are discussing a deal with the company’s management that would reverse the acquisition at the same $2 Bn valuation, according to the FT.

Tencent is expected to acquire the largest individual stake but remain a minority shareholder, the newspaper reported. Manus would continue to operate independently from its Singapore base rather than be absorbed into Tencent.

Discussions are still under way, and the final structure could include new investors. US venture capital firm Benchmark, which led a $75 Mn funding round in Manus before the Meta acquisition, is unlikely to participate, according to the FT.

Meta acquired Manus in December 2025 to strengthen its push into AI agents, software systems that can complete multi-step tasks with limited human intervention. The transaction valued the company at about $2 Bn.

In April 2026, China’s National Development and Reform Commission ordered Meta to reverse the acquisition, citing violations of the country’s investment rules. The intervention came even after Manus moved its headquarters and much of its engineering operations from China to Singapore before the deal.

Manus was founded in China and gained international attention for developing general-purpose AI agents capable of performing tasks such as research, coding and data analysis.

The episode also brought tighter controls on the company’s founders. Xiao Hong and other Manus founders have been barred from leaving China after being summoned to a meeting in Beijing, the FT reported. Chinese officials viewed the acquisition as a threat to the country’s ability to retain homegrown technology and talent, according to the newspaper.

It also signals that moving abroad may not place Chinese-founded technology companies beyond the reach of domestic regulators, particularly when an overseas sale involves strategically important technology.

The annual recurring revenue of Manus neared $500 Mn earlier this year, the FT reported, well above its level when Meta bought it. However, one person familiar with the matter cautioned that sustaining that growth outside Meta’s ecosystem remained uncertain, according to the newspaper.

The company could eventually pursue a listing in Hong Kong, although that may require further changes to its ownership and corporate structure, the newspaper reported.

The proposed transaction would return Manus to a group of predominantly Chinese investors while preserving its Singapore base. It would also give Tencent a significant stake in one of the region’s most closely watched AI-agent developers without handing the Chinese technology group outright control.

Tencent, Meta and Manus did not immediately respond to Reuters’ requests for comment.