Meta set to acquire stake in Ray-Ban smart glass partner

• Published On: 18 July 2024 at 18:44

Meta is apparently in talks to buy a 5% interest in EssilorLuxottica, its partner in creating Ray-Ban smart glasses, according to persons familiar with the situation, as reported by the Wall Street Journal Thursday.

Based on EssilorLuxottica's current market value of 86.50 billion euros, Reuters projected the potential shareholding to be around 4.33 billion euros using LSEG data.

The proposed investment might give Meta more control over the direction of its smart glasses roadmap, while tech titans such as Apple invest aggressively in augmented and mixed reality technology.

Following the news, EssilorLuxottica's Paris-listed shares increased by 3%, while Meta gained 1.2%.

EssilorLuxottica was formed in 2018 by the merging of France's Essilor with Italy's Luxottica. The firm is principally controlled by Delfin, the holding company of Luxottica's late founder Leonardo Del Vecchio's family, which owns about 33%.

The partnership between Meta and EssilorLuxottica on Ray-Ban smart glasses, which debuted in 2021, has been critical to Meta's consumer product range.

The latest edition of these glasses, which debuted in October of last year, apparently outsold earlier models within a few months, thanks to features such as a Meta AI assistant and livestreaming capabilities to Facebook and Instagram.

Analysts are optimistic about the glasses' probable market reception, with Bernstein analysts stating that Meta's Ray-Ban Smart Glasses will reach product-market fit in the next few generations.

A third-generation model is expected to be accessible by the 2025 holiday shopping season, according to the Wall Street Journal.