Source: Bloomberg
Summary
Meta Platforms Inc. has begun dismantling its $2 billion acquisition of Manus, a Chinese virtual reality hardware maker, after Beijing ordered the deal reversed. The decision comes as China tightens its grip on technology deals. The acquisition was announced in October 2021. According to a person familiar with the matter, Meta will return Manus’s assets and lay off some employees. The deal’s reversal marks a setback for Meta’s VR ambitions in China.
Our Reading
The launch follows a familiar script.
Meta’s $2 billion Manus acquisition is no more, thanks to Beijing’s reversal order. The deal, announced in 2021, was supposed to boost Meta’s VR presence in China. Now, assets will be returned, and some employees will be laid off. Just another chapter in the book of “global tech ambitions vs. Chinese regulations.” Because who needs a $2 billion acquisition when you can just have a really nice press release?
Author: Evan Null
