Tencent is leading a consortium of investors in a move to unwind Meta Platforms' proposed $2 billion acquisition of Manus, following regulatory intervention by Chinese authorities.
The development marks a significant shift in the ownership trajectory of the Singapore-headquartered artificial intelligence startup, which had been poised for integration into Meta's ecosystem.
The deal unravels after China's National Development and Reform Commission blocked the transaction, citing national security concerns related to the startup's deep ties to the Chinese tech sector.
Manus, despite its Singaporean incorporation, maintains substantial operational and intellectual property links to China, triggering scrutiny under Beijing's tightening rules on cross-border data and technology transfers.
Tencent's involvement signals a strategic effort by Chinese capital to retain control over high-value AI assets that might otherwise be absorbed by US tech giants.
The consortium's formation suggests that domestic investors are prepared to step in when geopolitical barriers prevent foreign acquisitions, potentially setting a precedent for future deals involving Chinese-linked startups.