Meta in Talks to Acquire Stake in EssilorLuxottica Amid Metaverse Expansion

Meta in Talks for Stake in EssilorLuxottica

Meta, the parent company of social media giants like Facebook, Instagram, and WhatsApp, is reportedly engaged in discussions to acquire a minority stake in EssilorLuxottica, a prominent European eyewear conglomerate. This move could further solidify the collaboration between the two companies, which have previously worked together on a line of innovative augmented reality glasses.

According to sources familiar with the negotiations, Meta may consider acquiring as much as 5 percent of EssilorLuxottica, a company renowned for its iconic eyewear brands including Ray-Ban and Oakley. Based in Charenton-le-Pont, France, EssilorLuxottica is currently valued at approximately €88 billion (around $96 billion).

The discussions are still in progress and could potentially fall through, as noted by the sources who opted to remain anonymous due to the confidential nature of the talks. A spokesperson for Meta declined to provide comments, while EssilorLuxottica has not yet responded to requests for further information. The Financial Times was the first to report on these discussions.

Meta’s Commitment to the Metaverse

An investment from Meta would underscore the company’s ongoing commitment to developing what is often referred to as the metaverse—a vast, immersive digital universe. Mark Zuckerberg, Meta’s Chief Executive Officer, has been a vocal advocate for the company’s transition towards metaverse-related initiatives, having authorized the expenditure of tens of billions of dollars on hardware aimed at enhancing user experiences, including virtual reality headsets and advanced wearable devices.

Partnership on Smart Glasses

In 2021, Meta and EssilorLuxottica joined forces to launch a new line of smart sunglasses branded as Ray-Ban Stories. These innovative glasses are equipped with built-in cameras that allow users to capture photos and videos effortlessly, which can then be uploaded directly to Meta’s various applications.

Last year, Meta unveiled an updated version of these glasses, rebranded as Ray-Ban Meta smart glasses. Some styles were met with high demand, resulting in quick sellouts. Both Zuckerberg and Andrew Bosworth, Meta’s Chief Technology Officer and head of Reality Labs, have highlighted the pivotal role of smart glasses in the company’s broader metaverse strategy.

AI Integration and Financial Challenges

Furthermore, Meta’s hardware division has become increasingly central to the company’s efforts in the field of artificial intelligence, particularly as rivals like Google and Microsoft intensify their A.I. initiatives across various platforms. In April, Meta successfully integrated its A.I. smart assistant into the Ray-Ban line, enabling users to ask questions, access recipes, and identify objects or landmarks in their vicinity.

Despite these advancements, Meta’s hardware division has faced significant challenges in achieving profitability. Reality Labs reported a staggering loss of $3.8 billion in the first quarter of this year alone. However, Zuckerberg appears undeterred, showing no signs of reducing his investment in this transformative technology.