Meta eyes stake in maker of Ray-Ban in smart glasses push
META Platforms is in discussions to acquire a minority stake in the maker of Ray-Ban sunglasses as part of its strategy to venture further into smart glasses. The company, which has previously collaborated with EssilorLuxottica on the development of Ray Ban-Meta smart eyewear, is contemplating an investment ranging from 3 per cent to 5 per cent in the luxury eyewear group. This potential investment could value the company at approximately 4.5 billion euros (S$6.6 billion) based on current market prices. Sources familiar with the matter, who preferred to remain anonymous, shared insights on these ongoing discussions. However, it is important to note that there is no official confirmation yet regarding the finalization of this deal.
A spokesperson for Meta has refrained from providing immediate comments on the matter. Similarly, a spokesperson for EssilorLuxottica has chosen not to comment on the speculations. Reports regarding these discussions were initially disclosed by the Financial Times.
Partnerships and Strategic Moves
By potentially acquiring a stake in EssilorLuxottica, META Platforms aims to strengthen its collaboration with the leading eyewear company globally. This move would not only enhance its involvement in the virtual and augmented reality landscape but also potentially elevate its competitive position against key industry players. While companies like Snap and Apple have already ventured into similar technologies, the mass adoption of these innovations by consumers is yet to materialize.
It is worth mentioning that Meta has previously invested in other companies as well. In a notable move four years ago, the social media behemoth announced its intention to purchase approximately 10 per cent of Reliance Industries’ Jio Platforms, emerging as the largest minority shareholder with a substantial investment of US$5.7 billion. This strategic partnership was forged at a time when Meta's CEO, Mark Zuckerberg, was focusing on expanding the company's presence in India to capitalize on the growing demand for online transactions and e-commerce facilitated by the widespread use of smartphones.
Embracing the Metaverse
Meta has placed significant emphasis on the metaverse, envisioning it as the future iteration of the Internet characterized by immersive digital environments accessible through specialized headsets. This vision, championed by Mark Zuckerberg as the next major technological breakthrough following the era of mobile phones, prompted the company to rebrand itself from Facebook to Meta to underscore its commitment to this concept.
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In 2021, Meta introduced its initial Ray-Ban smart glasses in collaboration with EssilorLuxottica. These glasses, built on the iconic Wayfarer frame, offer users functionalities such as capturing photos and videos, listening to music, and managing calls. The latest iterations of these smart glasses incorporate MetaAI, an artificial intelligence assistant powered by its Llama AI model.
Expanding Portfolio and Acquisitions
On a related note, EssilorLuxottica recently announced an agreement to acquire streetwear label Supreme from VF for US$1.5 billion in cash. This acquisition adds another coveted lifestyle brand to EssilorLuxottica's portfolio, which already includes renowned names like Oakley sunglasses.
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As the discussions between Meta and EssilorLuxottica progress, the tech industry eagerly anticipates the potential implications of this strategic partnership on the future landscape of smart eyewear and immersive technologies.
Sources: Financial Times, Bloomberg
