Tencent Seeks Control of Manus After China Blocks Meta Deal

Tencent Holdings Ltd. is in discussions to become the largest shareholder of Manus, an AI startup specializing in autonomous agents, following a directive from the Chinese government to reverse Meta Platforms Inc.'s $2 billion acquisition of the company. Beijing ordered the unwind in April after a regulatory review focused on investment rules, technology export controls, and the startup's decision to move operations to Singapore without approval, a practice regulators termed 'Singapore-washing.'

In response to the order, Meta has ceased data sharing and separated its operations from the startup. A consortium consisting of Tencent and original investors ZhenFund and HSG plans to repurchase Manus from Meta for at least $2 billion. While Tencent is expected to be the largest single holder, it intends to remain a minority shareholder to avoid concentrated control.

Manus moved its base of operations from China to Singapore last year. During its brief period under Meta's ownership, the company experienced significant growth, with annualized revenue increasing from approximately $100 million to between $400 million and $500 million.