Meta in talks to buy 5% stake in Ray-Ban maker EssilorLuxottica: report

By Liam On Jul 18, 2024

First launched in 2021, Ray-Ban Meta smart glasses are a key part of Meta’s consumer products portfolio. | (Photo: Reuters)

2 min read Last updated: Jul 19, 2024 | 12:34 PM IST

Meta Platforms is in talks to acquire a stake of about 5 percent in EssilorLuxottica, the manufacturing partner of the Ray-Ban smart glasses, the Wall Street Journal reported Thursday, citing sources familiar with the matter.

The stake in the world’s largest eyewear company could be worth 4.33 billion euros ($4.73 billion), based on the last market value of 86.50 billion euros, according to Reuters calculations based on data from LSEG.

The potential deal could give Meta more control over the smartglasses roadmap, at a time when tech giants like Apple are investing millions in developing advanced gadgets based on augmented and mixed reality technologies.

Shares in Paris-listed EssilorLuxottica rose 6 percent after the report, while shares in Meta rose 2.3 percent just after the opening bell.

The eyewear company was founded in 2018 through a merger of France’s Essilor and Italy’s Luxottica. Delfin, the holding company of the family of Luxottica’s late founder Leonardo Del Vecchio, is the largest investor, with a stake of almost 33 percent.

First launched in 2021, Ray-Ban Meta smart glasses are an important part of Meta’s consumer products portfolio.

Francesco Milleri, CEO of EssilorLuxottica, said earlier this week that the new generation of Ray-Ban Meta smart glasses, launched last October, have sold more in a few months than the old glasses did in two years.

Analysts are positive about the latest generation of the glasses, which include a Meta AI assistant and can stream what the user sees directly to Facebook and Instagram.

“We believe it will only be a generation or two before Meta’s Ray-Ban Smart Glasses have a product in the market,” Bernstein analysts said earlier this month.

According to the WSJ report, the third generation of Ray-Ban Meta glasses is expected to be ready around the 2025 holiday season.

EssilorLuxottica and Meta did not respond to Reuters requests for comment.

(Only the headline and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First print: Jul 19, 2024 | 12:34 PM IST