Meta Explores Ray-Ban Stake to Accelerate Smart Glasses
Published On: September 18, 2024
Meta Platforms is reportedly in talks to acquire a minority stake in EssilorLuxottica, the company behind Ray-Ban, as they look to deepen their collaboration in the smart glasses market. The potential investment, which is estimated to be between 3% and 5%, could be worth as much as €4.5 billion (approximately $6.6 billion). These discussions come as Meta continues their push into augmented reality (AR) and wearable technology, building on their existing partnership with the luxury eyewear group that began in 2019.
The partnership between Meta and EssilorLuxottica has already resulted in two generations of Ray-Ban Meta smart glasses, with the latest version launching in October 2023. These glasses feature advanced capabilities such as live streaming to Instagram and Facebook, hands-free interaction, and AI integration that allows users to query their surroundings in real-time. Despite these innovations, the adoption of smart glasses has been slow, as consumers have yet to embrace AR eyewear on a mass scale.
Meta has already secured clearance from US antitrust authorities to proceed with a potential stake of up to 5% in EssilorLuxottica, further indicating the seriousness of these discussions. Although no final agreement has been reached, the investment would mark a significant step in Meta’s strategy to make wearable technology a mainstream product, aligning with CEO Mark Zuckerberg’s vision of a future where smart glasses could replace smartphones.
This potential investment would not be Meta's first foray into taking stakes in other companies to advance their strategic goals. In 2020, Meta took a 10% stake in India's Jio Platforms for $5.7 billion, signaling their commitment to expanding in key technological areas.
Why it should matter to you?
This deal could mark a pivotal moment in the development of smart glasses, making the technology more accessible and practical for everyday use. As Meta strengthens its collaboration with the world’s largest eyewear manufacturer, consumers could soon see more advanced, fashionable smart glasses entering the market, offering hands-free features and augmented reality capabilities.