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Tencent to Become Manus' Largest Shareholder in $2 Billion Deal

Tencent Holdings is in advanced talks to become the largest shareholder of Manus, a Singapore-based AI startup, in a deal valued at $2 billion, according to foreign media reports on July 10. The transaction would replace a previously planned acquisition by US tech giant Meta Platforms, which was set to be finalized by the end of 2025 but has now been revoked.

Existing investors including Tencent, Zhen Capital, Sequoia China, and Manus' management are backing the new deal at the same $2 billion valuation (approximately RMB 13.6 billion) to cancel the Meta acquisition. Tencent is expected to subscribe to the largest share, while US venture capital firms like Benchmark are likely to exit. After the transaction, Manus will continue to operate independently and is betting on an eventual listing in Hong Kong, which may require restructuring to meet Chinese regulatory requirements.

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Manus was founded in 2022 in Wuhan Optics Valley by Xiao Hong, Ji Yichao, and Zhang Tao. Founder Xiao Hong has deep ties with Tencent; his previous company, Nightingale Technology, received strategic investment of hundreds of millions of yuan from Tencent and was later acquired by Minglue Technology.

As a star in the AI Agent field, Manus has shown strong financial performance. Its annual recurring revenue (ARR) reached nearly $500 million earlier this year, a significant jump from when it was acquired by Meta. On the technology front, Tencent is reportedly testing an embedded AI agent within WeChat, and Xiao Hong was among the first external experts invited to test it.

While maintaining growth outside the Meta ecosystem still faces uncertainties, Tencent's increased stake in Manus could accelerate the practical application of its WeChat AI agent and other cutting-edge products, deepening its underlying ecosystem layout in the AGI era.

Key Points

  • Tencent is in talks to become the largest shareholder of AI startup Manus in a $2 billion deal.
  • The deal replaces a previously planned acquisition by Meta.
  • Manus will continue to operate independently and aims for a Hong Kong listing.
  • The move is expected to boost Tencent's AI ecosystem, especially its WeChat AI agent.