Meta's $2B Manus acquisition collapses after China forces deal cancellation

Chinese AI startup Manus is preparing to operate as an independent company again after Meta was forced to abandon its acquisition. The deal, announced on December 29 last year, fell through after Chinese regulators concluded that the company's relocation to Singapore was an attempt to escape their oversight.

This week, Manus asked users to back up data received after December 29, 2025. The company said the request stems from regulatory requirements "in certain parts of the world," and some user data will have to be deleted. Affected users will receive individual notifications via email or the Manus app.

The startup was founded in China in 2022 but later moved to Singapore. Despite the move, Chinese authorities maintained that they still influence its operations and demanded in April that the deal with Meta be annulled. Since then, both sides have been working on separating operations and divesting assets that were to transfer from Meta to Manus shareholders.

The deal with Meta was valued at over $2 billion. Chinese holding company Tencent has also shown interest in acquiring a significant stake in Manus. The startup is expected to resume operations as an independent company in the near future.