Meta’s roughly $2 billion Manus deal may be unwound after China regulatory intervention

Manus reportedly reached about $100 million in ARR by the end of 2025 as early Chinese backers plan a $2 billion buyback from Meta through a regulation-compliant reverse acquisition.

Summary

Meta Platforms’ earlier acquisition of AI company Manus for about $2 billion may be reversed after Chinese regulators reportedly ordered the deal to be unwound. New details suggest Manus had reached about $100 million in annual recurring revenue by the end of 2025, with a revenue run-rate above $125 million and monthly growth exceeding 20%, according to two people familiar with the matter. Those people said Manus’ early Chinese backers plan to repurchase the company from Meta for $2 billion, as Asian investors favor a China regulation-compliant reverse acquisition. If completed, the move would return control to some original investors while underscoring the company’s rapid growth and the regulatory pressures shaping cross-border AI deals.

Terms & Concepts
  • annual recurring revenue: A subscription-focused metric showing the value of revenue a company expects to generate over a year from recurring customers.
  • revenue run-rate: An annualized estimate based on current revenue performance, used to indicate a company’s present sales pace.
  • reverse acquisition: A deal structure in which control or ownership is transferred back through an acquisition process, in this case described as compliant with China’s regulations.