Meta Scrambles to Unwind Manus Deal as Beijing's Deadline Looms

Meta is actively preparing to unwind its acquisition of Manus, according to a report by The Wall Street Journal. The social media giant is facing a ticking clock, as Beijing has set a deadline of several weeks for the restoration of all Chinese assets and the removal of any transferred data and technology from Meta's systems. Failure to comply could result in penalties.

The unwinding process is proving to be a complex task, as Meta has already integrated Manus's technology into its own systems. Furthermore, investors, including venture capital firm Benchmark, have already received their returns, making it challenging to reverse the deal. Several former Asian investors, including Tencent, HSG, and ZhenFund, are planning to cooperate with the unwinding process, according to the WSJ.

Before the ban, negotiations were still underway over possible concessions, such as the departure of the founders as a potential compromise. The move to unwind the Manus deal has raised concerns among investors with stakes in Chinese AI companies, who warn that such actions could scare foreign backers away from China's tech sector. As the deadline looms, Meta is working to untangle its relationship with Manus and restore compliance with Beijing's regulations.

The situation highlights the complexities of navigating China's tech regulations and the challenges of reversing deals that have already been integrated into a company's systems. As Meta works to unwind the Manus acquisition, the broader implications for China's tech sector and foreign investment remain to be seen.