META Platforms is in talks to take a minority stake in the maker of Ray-Ban sunglasses as the Facebook owner intensifies its push into smart glasses.
Meta, which has collaborated with EssilorLuxottica on Ray Ban-Meta smart eyewear, is considering a stake of more than 3 per cent and as much as 5 per cent in the luxury eyewear group, which would be valued at about 4.5 billion euros (S$6.6 billion) at current prices, according to sources familiar with the discussions, who asked not to be identified because the information is not public. There is no guarantee that an investment will take place, they said.
A spokesperson for Meta did not immediately respond to a request for comment. A spokesperson for EssilorLuxottica declined to comment. The Financial Times reported the talks earlier.
Meta has already received clearance from United States antitrust authorities to buy a minority stake of as much as 5 per cent, according to two sources familiar with the deal. The US Federal Trade Commission declined to comment.
By taking a stake in EssilorLuxottica, the social media giant would deepen its partnership with the world’s biggest eyewear company. It would also presumably gain more influence over a business that’s key to its virtual and augmented reality efforts and strengthen its position against rivals. Snap has been experimenting with mixed-reality spectacles for years while Apple released the Vision Pro headset earlier this year.
As yet, consumers have not adopted these technologies en masse.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
EssilorLuxottica shares were up 2.3 per cent at 194.20 euros at 11.11 am New York time. Meta gained 1.1 per cent to US$467.27.
This would not be the first company that Meta has taken a stake in. Four years ago, the social-media giant announced that it would buy about 10 per cent of Reliance Industries’ Jio Platforms, becoming its largest minority shareholder with a US$5.7 billion investment. That partnership came as chief executive officer Mark Zuckerberg was working to step up his expansion in India, where online payment and e-commerce demand was exploding as more people used smartphones.
Meta has heavily invested in the metaverse – a future version of the Internet made up of immersive worlds accessible via headsets – which Zuckerberg has hailed as the next major computing revolution after mobile phones. The company changed its name from Facebook to Meta years ago to underscore the dedication to the concept.
Meta unveiled its first Ray-Ban smart glasses in partnership with EssilorLuxottica in 2021. Those glasses were set on the Wayfarer frame to let users take photos and videos, listen to music and answer calls. Newer glasses incorporate MetaAI, an artificial intelligence (AI) assistant based on its Llama AI model.
EssilorLuxottica on Wednesday (Jul 17) announced an agreement to buy streetwear label Supreme from VF for US$1.5 billion in cash, adding another lifestyle brand to a stable that also includes Oakley sunglasses. BLOOMBERG
