Manus founder plans to raise 1 billion dollars to buy back the company from Meta and will go public in Hong Kong

Bloomberg reports that the three founders of China's AI startup Manus, Xiao Hong, Ji Yichao, and Zhang Tao, are discussing a buyback plan, aiming to raise approximately $1 billion from external investors at a valuation of at least $2 billion to reverse the Meta acquisition deal that was ordered to be canceled by the National Development and Reform Commission in April this year. If negotiations succeed, Manus will establish a joint venture with investors in China and list in Hong Kong. This report is compiled by Dongqu Dongqu.

(Background summary: Manus has handed over the code, investment funds have been received, and China's continued enforcement of Meta's withdrawal of the acquisition deal behind the scenes.)

(Additional background: China blocks Meta's acquisition of Manus: $2 billion deal ends, Singapore export model declared invalid)

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• China "bypasses overseas" AI roadblocks
• Employees working in Singapore, investors have already taken their money
• Frequently Asked Questions

Selling your own company and then raising $1 billion to buy it back is probably the least desirable script for entrepreneurs. According to Bloomberg, the three founders of China's AI startup Manus are exploring a buyback plan, intending to raise about $1 billion from external investors to address the situation where China's regulators ordered the cancellation of Meta's acquisition.

China "bypasses overseas" AI roadblocks

In April this year, the National Development and Reform Commission's Foreign Investment Security Review Office officially made a prohibition decision, requiring both parties to withdraw from the acquisition. The regulators' focus is not on the relocation of the company itself, but on how Manus transfers its core team, R&D capabilities, training data, and intellectual property from China overseas.

By July 2025, about 40 core technical personnel of Manus had relocated to Singapore, completing the acquisition structure through Singapore-based Butterfly Effect, while simultaneously closing domestic social media accounts and blocking Chinese IP addresses. This operation was later characterized by regulators as "bypassing overseas," similar to ByteDance and the Moonlit Shadow being banned from accepting US capital without approval. China's NDRC's requirement is clear: China's AI technology cannot flow to American companies.

If the buyback negotiations succeed, the next step is to establish a joint venture in China and seek a listing in Hong Kong. This is equivalent to re-integrating the already relocated technology capabilities into a framework under Chinese regulation.

Employees working in Singapore, investors have already taken their money

"Reversal of the deal" sounds simple, but in practice, it is another matter. Most of the transaction has actually been completed, as Manus employees are now working at Meta's Singapore office, with the technology deeply integrated into Meta's systems. Early investors such as Tencent, Sequoia China, and ZhenFund have also received exit funds.

The founders themselves are in a similarly awkward position. Xiao Hong and Ji Yichao were summoned by the NDRC in March this year and told they could not leave the country; most of the team is in Singapore.

Sources emphasize that the buyback and split plans are still in preliminary discussion, with valuations and terms subject to change at any time, and the three founders may ultimately choose to give up. Extracting the technology from Meta's system is probably more difficult than integrating it initially.

Frequently Asked Questions

Why are Manus founders trying to buy back their company from Meta?

In April this year, China's NDRC officially banned Meta's $2 billion acquisition of Manus on the grounds of foreign investment security review, requiring both parties to withdraw from the deal. The founders are exploring raising about $1 billion for a buyback and plan to establish a joint venture in China and list in Hong Kong.

What difficulties does Manus face in the buyback deal?

Main difficulties include: employees have already joined Meta's Singapore office, the technology is deeply integrated with Meta's systems, and early investors like Tencent and Sequoia have already received exit funds. Additionally, founders Xiao Hong and Ji Yichao are restricted from leaving the country and are separated from the Singapore team.