Meta Platforms, the parent company of Facebook, is currently in discussions to acquire a stake of approximately 5 per cent in EssilorLuxottica, which is its production partner for Ray-Ban smart glasses. This potential move was reported by the Wall Street Journal, as per sources familiar with the matter.
The stake in EssilorLuxottica, the world's largest eyewear company, could be valued at around US$4.73 billion based on its current market capitalization of $94.10 billion, according to calculations based on LSEG data by Reuters.
Control Over Smart Glasses Roadmap
If the deal goes through, it could provide Meta with additional control over the development of the smart glasses at a time when major tech companies like Apple are heavily investing in advanced gadgets utilizing augmented and mixed-reality technologies.
The Ray-Ban Meta smart glasses, initially introduced in 2021, have played a significant role in Meta's range of consumer products.
Formation of EssilorLuxottica
Founded in 2018 through a merger between France's Essilor and Italy's Luxottica, EssilorLuxottica has Delfin as its largest investor. Delfin is the holding company controlled by the family of Luxottica's late founder Leonardo Del Vecchio, holding a stake of almost 33 per cent in the company.
Francesco Milleri, the CEO of EssilorLuxottica, recently mentioned that the latest generation of Ray-Ban Meta smart glasses, launched in October last year, have outsold their predecessors in just a few months compared to a two-year sales period.
Analysts have shown optimism towards the new glasses' capabilities, which include a Meta AI assistant and the ability to livestream content directly to Facebook and Instagram.
Bernstein analysts stated, "We believe Meta's Ray-Ban Smart Glasses may only be a generation or two away from finding product market fit."
Success of Ray-Ban Meta Smart Glasses
According to the WSJ report, a third generation of the smart glasses is anticipated to be available by the 2025 holiday shopping season.
EssilorLuxottica declined to provide a comment on the matter, and Meta did not respond to Reuters' request for a comment.
Click here to log in to post a comment.
We utilize cookies on our websites. You have the freedom to manage this through your browser settings at any time. To understand more about our use of cookies, please refer to our Privacy Policy.
