Meta Platforms, the parent company of Facebook and Instagram, is reportedly in discussions to acquire a 5% stake in EssilorLuxottica, the world’s largest eyewear company and Meta’s production partner for Ray-Ban smart glasses. This potential stake is estimated to be worth approximately 4.33 billion euros based on EssilorLuxottica’s current market value of 86.50 billion euros.
The move is seen as a strategic step for Meta to strengthen its control over the development and roadmap of its smart glasses, particularly at a time when major tech rivals like Apple are heavily investing in augmented and mixed-reality technologies.
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EssilorLuxottica, formed in 2018 through the merger of Essilor from France and Luxottica from Italy, has seen its Paris-listed shares rise by 3% following reports of the potential deal, while Meta’s stock has gained 1.2%.
The collaboration between Meta and EssilorLuxottica has been pivotal, especially with the launch of the Ray-Ban Meta smart glasses in 2021, which include features like Meta’s AI assistant and livestream capabilities to Facebook and Instagram. The latest generation, launched in October 2021, has reportedly outsold its predecessors significantly within just a few months.
Analysts have expressed optimism about the future of these smart glasses, with expectations for a third-generation model ready by the 2025 holiday-shopping season, according to the Wall Street Journal report. They believe that Meta’s smart glasses are approaching a stage where they could gain broader market acceptance.
EssilorLuxottica CEO Francesco Milleri recently highlighted the success of the new Ray-Ban Meta glasses, underscoring their growing importance within Meta’s consumer products lineup.
Both EssilorLuxottica and Meta have refrained from commenting on the potential stake acquisition, indicating ongoing negotiations and strategic considerations surrounding the deal.
