Report: Manus Annualized Revenue Rises to $500M; Chinese Shareholders Plan to Buy Back Stake from Meta at Original $2B Valuation
Miles Bennett
Manus's early Chinese investors are negotiating to buy the AI company back from Meta at its original $2 billion acquisition price — while Manus's annualized revenue has surged from $100 million at the time of sale to $400–500 million, meaning the buyers would reclaim a company four times larger for the same price.
What is this buyback about?
According to *The Information*, HSG and ZhenFund are considering funding a buyback of Manus shares at Meta's original $2 billion acquisition price from last December. Tencent will also participate.
The direct trigger: China's government formally ordered the unwinding of Meta's acquisition in April, citing the deal's failure to obtain prior regulatory approval.
This means → This is not a commercial negotiation over price. It is a regulatory-forced unwind — the price is anchored at the original figure, not set by the market.
U.S. venture firm Benchmark will not participate. In plain terms = if Benchmark exits entirely, Manus's shareholder base will tilt decisively toward Chinese capital.
Why is Manus worth this price?
Manus's annualized revenue run rate (ARR — projected full-year revenue based on current pace) has risen to $400–500 million, up from $100 million when Meta acquired it last December.
Revenue comes from subscription-based AI agent tools — software that autonomously browses the web and handles tasks like travel booking and stock analysis — priced at $20–200 per month.
This means → The Chinese investors are buying back at last year's price for this year's business — on paper, a significant bargain.
Why did Beijing force the deal apart?
The core regulatory concern: Manus's sale could set a precedent for AI startups transferring technology and talent to a geopolitical rival.
Manus was founded in China, relocated to Singapore last year to soften its Chinese identity and accelerate global expansion, then sold to Meta — a sequence widely criticized on Chinese social media as a betrayal.
After acquiring Manus, Meta integrated it into internal systems and its ad platform. Once Beijing intervened, Meta separated the operations and cut data-sharing between the two companies.
This reflects Beijing's AI regulatory logic: technology sovereignty comes before commercial freedom, especially when the buyer is a U.S. tech giant.
What happens to Manus after the buyback?
As part of the buyback arrangement, Manus is considering restructuring as a joint venture registered in China, positioning itself for a future Hong Kong IPO.
The logic: this structure lets Chinese investors keep their stakes within a dollar-denominated framework while improving the odds of securing Chinese regulatory approval for a Hong Kong listing.
In plain terms = Manus has come full circle — founded in China, moved to Singapore, sold to Meta, forced back — and now aims to restart as a Chinese joint venture headed for the Hong Kong stock exchange.
What happens to the original investors?
Multiple VCs — including HSG, ZhenFund, Benchmark, and Tencent — had already distributed exit proceeds to their limited partners after Meta's acquisition closed.
A buyback now means these funds need to raise fresh capital to complete the transaction — and Benchmark has already said it will not participate.
This means → After the buyback, Manus's investor map will fundamentally shift: American capital exits, Chinese capital reconsolidates.
Content is for reference only, not financial advice.