The Wall Street Journal reports that Meta is planning to comply with the order to undo the Manus acquisition. Maybe they are happy to get a mulligan for hasty, overpriced acquisition of a company with little proprietary technology, or maybe they realize there is no point in fighting the order, as they would if the US government made it, given the lack of recourse available and the leverage the PRC government has over Meta. Reuters reports that: Meta conducted only a few weeks of due diligence to complete the acquisition in December, while neither Meta nor Manus sought Chinese regulatory approval for the deal or its relocation to Singapore, said five sources with knowledge of the matter. That is remarkable, and makes the PRC move more justifiable, and, if the government wants to make an example of the case, perhaps the pretext to go after not only Manus and its executives but also the VCs, lawyers and accountants involved in the deal, all of whom should have known the rules around regulatory approval. Meta clearly overpaid, so maybe this will turn out to be a positive for the company, even as it sends a chilling message to PRC entrepreneurs and investors.
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