Meta, parent of the social media platform Facebook, is in discussions to purchase a 5% share in EssilorLuxottica, maker of the Ray-Ban eyewear brand.
This development was reported by the Wall Street Journal (WSJ) on 18 July 2024.
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The stake in the eyewear maker could be valued at €4.33bn ($4.72bn), according to calculations by Reuters based on LSEG [London Stock Exchange Group] data.
The potential acquisition would provide Meta with greater influence over the development of smart glasses.
EssilorLuxottica’s shares listed in Paris saw a 3% increase following the report, while Meta’s shares rose by 1.2%.
EssilorLuxottica was established in 2018 through the merger of French firm Essilor and Italy’s Luxottica.
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By GlobalDataDelfin, the holding entity controlled by the family of Luxottica’s late founder Leonardo Del Vecchio, remains the major shareholder with a 33% stake.
Meta and EssilorLuxottica are production partners of Ray-Ban smart glasses.
The Ray-Ban Meta smart glasses, which debuted in 2021, have become a significant component of Meta’s consumer product lineup.
In July 2024 EssilorLuxottica CEO Francesco Milleri highlighted that the newer version of the Ray-Ban Meta smart glasses, released in October 2023, has outperformed the previous model’s two-year sales in just a few months.
A third iteration of the glasses is anticipated to be market-ready by the 2025 holiday shopping season, as reported by the WSJ.
EssilorLuxottica and Meta have not responded to requests for comment.
The news follows EssilorLuxottica’s agreement in mid-July 2024 to buy the streetwear label Supreme from VF Corporation for $1.5bn in cash.
