Ruh oh.
Back in December, Meta acquired Manus for $2 billion, a Singapore-based startup—originally founded in China—focused on building AI agents. The deal was well received and appeared to immediately benefit Meta’s ads business. Manus effectively operates as an AI analyst within Meta Ads Manager, automating reporting and analysis for campaigns across Facebook and Instagram.
Now, China is calling on Meta to unwind the deal, arguing the investment does not comply with its laws and regulations governing foreign ownership.
Why This Matters:
This is a direct issue for Meta. Manus agents are already embedded in Ads Manager, so unwinding the deal could be technically and operationally complex—especially given the role they’re already playing for advertisers. It’s not clear what “undoing” this looks like in practice.
At the same time, advertiser demand is clear. Both large and small brands are leaning into agentic automation to support campaigns, and most marketers now seem to be using AI somewhere in their workflow. Manus is, of course, valuable given the trend.
More broadly, this could have implications for cross-border M&A (adtech or otherwise). There’s a growing pattern of companies founded in China relocating to markets like Singapore to make themselves more accessible to U.S. buyers. If the Manus deal is forced to unwind, it raises questions about how viable that model really is. It may also signal escalating geopolitical tension between the U.S. and China. (Does this become something the Trump administration looks into.)
Experts React:
Here are some thoughtful takes on the news from experts on X:
Our Take:
Tough one for Meta, given how deeply Manus is integrated. It also shows how quickly agentic tools are becoming core to advertisers’ operating layers, not just add-ons.
On the M&A side, if cross-border deals like this become harder to execute or unwind, expect more focus on building in-house, partnering locally, and rethinking how and where critical AI capabilities are sourced.
