Meta Eyes 5% Stake in EssilorLuxottica, Ray-Ban’s Parent Company

Meta Platforms (META.O) is reportedly in discussions to acquire a 5% stake in EssilorLuxottica (ESLX.PA), the world’s largest eyewear company and the production partner for Ray-Ban smart glasses. This strategic investment, valued at approximately €4.33 billion ($4.73 billion) based on EssilorLuxottica’s current market value, could grant Meta more influence over the development of its smart glasses technology.

Strategic Investment in Smart Glasses Acquiring a stake in EssilorLuxottica would provide Meta with greater control over the roadmap for Ray-Ban smart glasses, a critical component of its augmented and mixed reality initiatives. As tech giants like Apple (AAPL.O) pour millions into developing cutting-edge AR and MR gadgets, Meta’s deeper involvement with EssilorLuxottica could enhance its competitive edge in the burgeoning smart glasses market.

Market Impact and Financial Details Following the news, EssilorLuxottica’s Paris-listed shares saw a 3% increase, while Meta’s shares rose by 1.2%. EssilorLuxottica was formed in 2018 through the merger of France’s Essilor and Italy’s Luxottica. Delfin, the holding company of Luxottica’s late founder Leonardo Del Vecchio’s family, remains the largest investor with a 33% stake.

Success of Ray-Ban Meta Smart Glasses Since their initial launch in 2021, Ray-Ban Meta smart glasses have become a significant part of Meta’s consumer product line. The latest generation, released in October, has outperformed previous versions in sales within just a few months. Analysts have praised these glasses, which feature a Meta AI assistant and can livestream user perspectives to Facebook and Instagram.

Bernstein analysts recently commented on the product’s potential, suggesting that Meta’s smart glasses may soon achieve widespread market acceptance. The next iteration of the glasses is anticipated to be available by the 2025 holiday-shopping season, furthering Meta’s commitment to this innovative technology.

Conclusion Meta’s potential investment in EssilorLuxottica signifies a strategic move to bolster its position in the smart glasses market. By acquiring a 5% stake, Meta aims to enhance its control over the development of Ray-Ban smart glasses, ensuring its competitive stance in the evolving landscape of augmented and mixed reality technologies. As both companies continue to innovate, this partnership could pave the way for the next generation of smart eyewear.