Meta, the tech giant behind Facebook, Instagram, and WhatsApp, is in talks to acquire a minority stake in EssilorLuxottica, the European eyewear conglomerate. The potential investment, which could be as much as 5 percent, aims to bolster the collaboration between the two companies, who have previously partnered on augmented reality (AR) eyewear. The discussions were disclosed by individuals familiar with the matter, who requested anonymity due to the confidential nature of the talks.
EssilorLuxottica, headquartered in Charenton-le-Pont, France, and publicly traded on the Paris stock exchange, is valued at approximately €88 billion ($96 billion). The talks are ongoing and may not culminate in a deal, the sources cautioned, according to the New York Times.
If the investment proceeds, it would reinforce Meta's dedication to the metaverse—a virtual, immersive digital universe that has been a major focus for the company. CEO Mark Zuckerberg has championed the metaverse, steering Meta towards significant investments in related hardware, including virtual reality headsets and smart wearables. This strategic shift has seen Meta authorize tens of billions of dollars towards developing these technologies.
Meta's collaboration with EssilorLuxottica began in 2021 with the launch of Ray-Ban Stories, a line of smart sunglasses featuring built-in cameras that can capture photos and videos for easy upload to Meta’s platforms. The partnership continued to evolve, and last year saw the introduction of an updated version, renamed Ray-Ban Meta smart glasses, which quickly became popular.
Both Zuckerberg and Andrew Bosworth, Meta’s Chief Technology Officer and head of Reality Labs, have underscored the significance of smart glasses within their broader metaverse strategy. Reality Labs, Meta’s hardware division, plays a crucial role in the company’s ambitions, not only in AR but also in artificial intelligence (AI). In April, Meta integrated its AI smart assistant into the Ray-Ban Meta smart glasses, allowing users to perform tasks such as asking questions, following recipes, or identifying objects and landmarks.
Despite the innovation and strategic importance, Meta’s hardware division has struggled to turn a profit. Reality Labs reported a loss of $3.8 billion in the first quarter of this year. However, Zuckerberg remains undeterred, continuing to invest heavily in the technology.
The potential stake in EssilorLuxottica would signify a deepening of the relationship between Meta and the eyewear manufacturer, positioning both companies to further advance in the competitive AR market. EssilorLuxottica, known for brands like Ray-Ban and Oakley, brings its expertise in eyewear manufacturing, while Meta contributes its technological prowess and vision for the metaverse.
As the talks continue, the industry watches closely. An alliance between Meta and EssilorLuxottica could set the stage for significant advancements in AR technology, potentially reshaping how consumers interact with both digital and physical worlds through their eyewear.