Meta considering multi-billion dollar investment into Ray Ban maker
Meta may buy as much as a 5% stake in EssilorLuxottica as sales of Ray-Ban Meta glasses grow.
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Meta may buy as much as a 5% stake in EssilorLuxottica as sales of Ray-Ban Meta glasses grow.
The Facebook and Instagram owner Meta wants to deepen ties with European eyewear group EssilorLuxottica and is weighing up a multi-billion dollar investment, according to a report by Financial Times.
Meta is considering a 3-5% percent stake into the Paris-listed EssilorLuxottica. Based on its current valuation of around $95 billion, the total investment could be nearly $5 billion.
Bloomberg sources say that Meta has already gotten a regulatory clearance from the US authorities. However, there are no guarantees that the deal will take place.
For the past few years, Meta has heavily invested in virtual reality and related wearable technologies. The stake in EssilorLuxottica would help to deepen its influence and ties with the company, while for the eyewear maker the deal may eventually help to attract a new generation of shoppers.
This week, Francesco Milleri, the CEO of EssilorLuxottica, announced that the new generation of Ray-Ban Meta glasses had sold more units in a few months than the previous version did in a few years.
Meta and EssilorLuxottica launched the first version of Ray-Ban Meta smart glasses in 2021, but the device failed to attract customers' attention.
Last October, the new $300 version of the glasses was released, which allowed users to stream to their Facebook and Instagram feeds directly from the glasses.The new version also came with other improvements, such as a 12MP camera sensor instead of 5MP, a higher screen, and video resolution.
This March, Meta released an AI update to the glasses. It enables users to ask real-time questions and get real-time information or recommendations. For example, users can ask the smart glasses to identify objects, translate language, or make suggestions based on photos made with the glasses.
However, these AI features are only available in the US, as Meta says it is waiting for the decision of the AI Act in Europe.