Meta is currently in discussions to acquire a minority stake in EssilorLuxottica, the European eyewear conglomerate, according to sources familiar with the matter. The deal could see Meta taking up to a 5% stake in EssilorLuxottica, known for eyewear brands like Ray-Ban and Oakley. The company is valued at approximately €88 billion or $96 billion and is listed on the Paris stock exchange.
The talks are ongoing and might not lead to a final agreement, as per the sources who requested anonymity due to the confidential nature of the discussions. Meta declined to comment on the matter, while EssilorLuxottica has not provided an official statement yet. The Financial Times was the first to report on these discussions.
Meta’s interest in EssilorLuxottica aligns with its focus on the metaverse, a digital realm that the company is actively building. Through partnerships and investments, Meta is striving to create immersive experiences within the metaverse. Mark Zuckerberg, Meta’s CEO, has been driving this vision by allocating significant funds towards metaverse-related products, including virtual reality headsets and wearable tech.
In a previous collaboration in 2021, Meta and EssilorLuxottica teamed up to launch Ray-Ban Stories, a series of smart sunglasses that integrated camera capabilities. These glasses allow users to capture photos and videos that can be easily shared on Meta’s platforms. The success of the initial release led to an updated version named Ray-Ban Meta smart glasses, which quickly gained popularity.
Meta’s hardware division, particularly Reality Labs overseen by Andrew Bosworth, Meta’s CTO, plays a pivotal role in developing hardware for the metaverse. Smart glasses are crucial to Meta’s metaverse strategy, as emphasized by Zuckerberg and Bosworth. The integration of AI into the smart glasses further enhances the user experience, enabling features like voice commands and object recognition.
Despite significant investments in hardware and AI, Meta’s Reality Labs division has yet to achieve profitability, with a reported loss of $3.8 billion in the first quarter of this year. However, Meta remains committed to advancing its technology and expanding its presence in the metaverse, signaling a long-term strategy towards immersive digital experiences.
