Meta has begun dismantling its $2 billion acquisition of Manus, according to a report from TechCrunch. The move comes after Beijing demanded the deal be reversed, placing the tech giant in a difficult regulatory position.
The acquisition, which had been seen as a strategic play for Meta’s expansion in AI and virtual reality, now faces an abrupt unraveling. The Chinese government’s intervention signals growing tensions over foreign ownership of domestic tech assets.
TechCrunch reported the $2 billion figure but did not provide additional financial terms or a timeline for the unwinding. It remains unclear whether Meta will face penalties or forfeit any portion of the investment.
The reversal could reshape Meta’s operations in the region and dampen its ambitions in the Chinese market. Other technology firms may also reconsider cross-border deals amid Beijing’s increasing scrutiny.
Industry analysts expect this to trigger a broader reevaluation of foreign tech investments in China, though no official statements have been released by Meta or Chinese regulators.