Tencent Holdings Ltd. (TCEHY), an earlier investor in Manus, is reportedly in discussions to become the largest shareholder in the Chinese agentic AI pioneer after Beijing blocked Meta Platforms Inc. NASDAQ:META, the U.S. company behind the transaction, from completing its $2 billion acquisition. The Financial Times reported that Tencent, venture capital firm ZhenFund, and HSG, the investment firm formerly known as Sequoia Capital China, are considering backing a transaction that would unwind Meta's purchase at the same $2 billion valuation. Tencent had not immediately responded to a request for comment, suggesting that the proposed ownership structure remains under discussion.
Meta's acquisition of Manus had previously been viewed as a possible blueprint for Chinese AI startups seeking to expand internationally, but the transaction drew criticism in China over the transfer of important technology to a geopolitical rival. The concerns led to a months-long regulatory review involving technology export controls, before Chinese regulators decided in April to block the deal. Because the acquisition had already been completed, the decision triggered a complicated process of separating the two companies and reversing the transaction.
Meta has since divided its operations from Manus and stopped data sharing between the companies, effectively establishing a firewall between the two businesses. For investors, Tencent's potential move to become Manus's largest shareholder may preserve the AI company's $2 billion valuation while placing it under stronger ownership from its earlier Chinese-backed investor group. The discussions also come as Beijing increases scrutiny of cross-border technology financing, including moves to prevent ByteDance Ltd. and Moonshot AI, two major technology companies, from accepting American capital without approval and tighter restrictions on offshore Chinese companies seeking Hong Kong listings.