Meta is reportedly in negotiations to acquire a stake of approximately 5% in EssilorLuxottica, its partner in producing Ray-Ban smart glasses, according to sources familiar with the matter as reported by the Wall Street Journal on Thursday.
Based on EssilorLuxottica’s current market value of 86.50 billion euros, the potential stake could amount to about 4.33 billion euros, as calculated by Reuters using LSEG data.
The proposed investment would potentially grant Meta greater influence over the direction of its smart glasses roadmap, amid intensifying competition from tech giants such as Apple, who are aggressively investing in augmented and mixed-reality technologies.
Following the news, shares of EssilorLuxottica, listed in Paris, surged by 3%, while Meta saw a modest gain of 1.2%.
Formed in 2018 through the merger of France’s Essilor and Italy’s Luxottica, EssilorLuxottica is primarily owned by Delfin, the holding company of Luxottica’s late founder Leonardo Del Vecchio’s family, holding nearly 33% of the company.
The collaboration between Meta and EssilorLuxottica on Ray-Ban smart glasses, first introduced in 2021, has been pivotal in Meta’s consumer products portfolio.
The latest generation of these glasses, launched in October last year, reportedly outpaced previous models in sales within a few months, driven by features like a Meta AI assistant and livestream capabilities directly to Facebook and Instagram.
Analysts have expressed optimism about the glasses’ potential market reception, with Bernstein analysts noting that Meta’s Ray-Ban Smart Glasses are nearing product-market fit within the next few generations.
A third-generation iteration is anticipated to be available by the 2025 holiday-shopping season, WSJ reported
