Meta in Talks to Acquire 5% Stake in Ray-Ban Maker EssilorLuxottica
Updated: Aug 26
Meta Platforms is in talks to acquire a 5% share in EssilorLuxottica, the manufacturer of Ray-Ban sunglasses. The share might be valued around 4.33 billion euros depending on EssilorLuxottica's market valuation. This acquisition would offer Meta more control over the development of smart eyewear.
The possible transaction would strengthen Meta's cooperation with EssilorLuxottica, which manufactures the popular Ray-Ban smart glasses.
Based on EssilorLuxottica's current market value of 86.50 billion euros, the share might be valued around 4.33 billion euros. This approach would offer Meta greater control over the development and future direction of the smart glasses, which are an important part of Meta's consumer product line.
The timing of this possible acquisition is noteworthy, as big technology companies such as Apple are significantly investing in cutting-edge devices that use augmented and mixed reality technologies. Meta's acquisition of a share in EssilorLuxottica intends to keep it at the forefront of innovation in the smart glasses sector.
Following the announcement, EssilorLuxottica shares jumped 3%, showing that the market is optimistic about the proposed merger. Meanwhile, Meta's stock value increased by 1.2%.
EssilorLuxottica was founded in 2018 by the merging of the French firm Essilor and the Italian company Luxottica. Delfin, held by the family of Luxottica's late founder Leonardo Del Vecchio, currently controls the majority ownership in the eyeglasses company, accounting for almost 33%.
The Ray-Ban Meta smart glasses, which debuted in 2021, have been a key component of Meta's consumer product range. The most recent iteration of these spectacles, released in October of last year, exceeded its predecessors in terms of sales. These glasses, which have a Meta AI assistant and the ability to livestream directly to Facebook and Instagram, have received excellent comments from experts.
Bernstein analysts are optimistic about the future of Meta's Ray-Ban Smart Glasses, claiming that they are only a generation or two away from attaining product-market fit.
According to the Wall Street Journal, the third generation of Ray-Ban Meta smart glasses is projected to be available for the 2025 holiday shopping season.
At this time, neither EssilorLuxottica nor Meta have issued official statements regarding the proposed merger.
Meta Platforms is in talks to acquire a 5% stake in EssilorLuxottica, the maker of Ray-Ban sunglasses.
The stake could be worth approximately 4.33 billion euros based on EssilorLuxottica's market value.
This acquisition would give Meta greater control over the development of smart glasses.
Source: REUTERS
