Meta is currently in discussions to acquire a minority stake in EssilorLuxottica, the European eyewear conglomerate, according to sources familiar with the negotiations. The move could further solidify the relationship between the two companies, which have previously collaborated on a line of augmented reality glasses.
Meta is considering acquiring up to a 5 percent stake in EssilorLuxottica, known for its iconic eyewear brands such as Ray-Ban and Oakley. EssilorLuxottica, based in Charenton-le-Pont, France, is valued at approximately €88 billion ($96 billion) on the Paris stock exchange.
The ongoing discussions remain confidential, and there is a possibility that the talks may not result in a deal, the sources indicated. The Financial Times was the first to report on the potential investment.
An investment from Meta, the parent company of Facebook, Instagram, and WhatsApp, would demonstrate its continued commitment to developing the metaverse, an expansive digital universe. CEO Mark Zuckerberg has been a strong proponent of Meta’s pivot towards metaverse-related products, sanctioning significant expenditures on hardware such as virtual reality headsets and smart wearable devices.
In 2021, Meta partnered with EssilorLuxottica to create a line of Ray-Ban smart sunglasses, branded as Ray-Ban Stories. These innovative glasses feature built-in cameras capable of capturing photos and videos, which can then be swiftly uploaded to Meta’s social media platforms.
Last year, Meta released an updated version of these glasses under the new name Ray-Ban Meta smart glasses. The revamped line quickly became popular, with some styles selling out soon after release. Both Mark Zuckerberg and Andrew Bosworth, Meta’s Chief Technology Officer who heads Reality Labs, have emphasized the significance of smart glasses to the company’s metaverse ambitions.
Reality Labs, Meta’s hardware division, plays a crucial role in the company’s metaverse strategy. However, it has also become integral to Meta’s advancements in artificial intelligence (AI), which is increasingly important as competitors like Google and Microsoft intensify their AI efforts across their products.
The potential investment in EssilorLuxottica aligns with Meta’s broader strategic goals. By deepening its partnership with a leading eyewear manufacturer, Meta could accelerate the development and adoption of its smart glasses, which are a key component of its vision for the metaverse. The augmented reality capabilities of these glasses are intended to provide users with immersive experiences, seamlessly blending digital information with the real world.
EssilorLuxottica, formed from the merger of French ophthalmic optics company Essilor and Italian eyewear manufacturer Luxottica, brings a wealth of expertise in eyewear design and production. This collaboration could enhance the functionality and appeal of Meta’s smart glasses, making them more attractive to a wider audience.
Meta’s foray into smart glasses is part of its broader strategy to create a suite of products that support its metaverse vision. In addition to smart glasses, Meta is also developing advanced VR headsets and other wearable devices. These technologies are designed to enable users to interact with the metaverse in more natural and intuitive ways.
However, the road to mainstream adoption of augmented reality and virtual reality technologies is fraught with challenges. High production costs, technological limitations, and user acceptance are significant hurdles that Meta must overcome. The collaboration with EssilorLuxottica could help address some of these challenges by leveraging the company’s expertise in eyewear and its global manufacturing capabilities.
Meta’s ongoing investments in AI also play a critical role in enhancing the user experience of its smart glasses. The integration of AI assistants into wearable devices like Ray-Ban Meta smart glasses aims to provide users with convenient, hands-free access to information and services. As AI technology continues to evolve, it is expected to become an increasingly important feature of Meta’s hardware products.
