Meta forced to unwind $2 billion Manus acquisition after China blocks deal on national security grounds

China's National Development and Reform Commission ordered Meta to unwind the acquisition of AI startup Manus and return the company's Chinese assets, including data and technology, within a few weeks, according to a Wall Street Journal report.

Manus, which relocated to Singapore in 2025, had reached $100 million in annualized revenue at the time of the deal announced late last year. The acquisition was part of Meta's push into AI agents (AI systems that can autonomously make decisions and complete tasks).

Investors including Tencent, HSG, and ZhenFund are affected by the unwind, and regulators may impose penalties if the reversal is not handled properly.