Meta Platforms in Talks to Acquire 5% Stake in EssilorLuxottica

Key Takeaways

• META (Meta Platforms) is negotiating to acquire a 5% stake in ESLOF (EssilorLuxottica)
• The potential deal could enhance Meta’s influence over the development of Ray-Ban smart glasses.
• EssilorLuxottica shares rose 3%, while Meta gained 1.2% following the news.

Strategic Acquisition to Bolster Smart Glasses Development

META (Meta Platforms) is in discussions to acquire a 5% stake in EssilorLuxottica, its production partner for Ray-Ban smart glasses. The potential stake in the world’s largest eyewear company is estimated to be worth around €4.33 billion ($4.73 billion), based on EssilorLuxottica’s latest market valuation of €86.50 billion.

This strategic move comes as tech giants, including AAPL (Apple), are heavily investing in augmented and mixed-reality technologies. The acquisition could provide Meta with greater control over the roadmap for its smart glasses, positioning it strongly in the competitive market for cutting-edge wearable technology.

Growth of Ray-Ban Smart Glasses

The Ray-Ban Meta smart glasses, first launched in 2021, have become a significant part of Meta’s consumer products lineup. EssilorLuxottica CEO Francesco Milleri noted that the new generation of Ray-Ban Meta smart glasses, launched last October, has outsold the previous generation’s two-year sales in just a few months. Analysts have also responded positively to the latest iteration, which features a Meta AI assistant and the ability to livestream what users see directly to Facebook and Instagram.

Some analysts recently commented that Meta’s Ray-Ban smart glasses could be “a generation or two away from finding product market fit.” A third generation of the glasses is expected to be ready by the 2025 holiday shopping season.