Meta Negotiating Stake in Ray-Ban Maker for Advancing Smart Glasses
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Meta Platforms in Negotiations for Ray-Ban Stake to Boost Smart Glasses Initiative
Meta Platforms Inc., the parent company of Facebook, is reportedly in discussions to acquire a minority stake in EssilorLuxottica SA, the renowned maker of Ray-Ban sunglasses. This move aligns with Meta's intensified efforts to advance in the realm of smart glasses. According to insiders who have knowledge of these talks, Meta may seek to purchase up to a 5% stake in EssilorLuxottica, valuing the investment at approximately €4.5 billion ($4.9 billion). The details, however, remain unconfirmed and subject to change as both parties have not publicly commented on the matter.
Meta's partnership with EssilorLuxottica has previously yielded the release of Ray-Ban Meta smart eyewear. By formalizing this investment, Meta aims to fortify its collaborations with the world's largest eyewear manufacturer. In the broader scope, Meta's foray into augmented and virtual reality technologies is part of a larger trend among tech giants striving to keep users engaged through innovative interfaces. Competitors like Snap Inc. have ventured into mixed-reality spectacles, and Apple Inc. introduced its Vision Pro headset earlier this year. Despite tech advances, these AR and VR technologies have yet to achieve widespread consumer adoption.
EssilorLuxottica shares saw a significant rise of 4.6% to €198.65 in Paris following the news of the potential investment. For Meta, this move supports its larger vision spearheaded by CEO Mark Zuckerberg, who sees the metaverse—a collection of immersive digital worlds accessed through headsets—as the next leap in computing advancements, akin to the mobile phone revolution. Reflecting this ambition, the company rebranded from Facebook to Meta to emphasize its commitment to developing the metaverse.
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Bloomberg Intelligence analysts Mandeep Singh and Nishant Chintala suggest that Meta's potential stake in EssilorLuxottica isn't just about smart glasses but a broader strategy to enhance its AR capabilities. Unlike its Oculus VR platform, Meta's AR ecosystem could see significantly faster growth due to the expanding applications of smart glasses, particularly with AI integration and virtual-assistant functionalities.
Meta's initial foray into smart eyewear materialized in 2021 with the launch of Ray-Ban smart glasses, featuring the classic Wayfarer frame. These glasses allowed users to capture photos and videos, play music, and handle calls. The latest iterations of these glasses are now equipped with MetaAI, an assistant powered by Meta’s Llama artificial intelligence model.
In related developments, EssilorLuxottica recently made headlines with its agreement to acquire the streetwear brand Supreme from VF Corp. for $1.5 billion in cash, further expanding its portfolio alongside other brands like Oakley.
