Sources have revealed that Meta Platforms is considering acquiring a minority stake in EssilorLuxottica, the parent company of its Ray-Ban Meta glasses development partner, as it accelerates its development of smart glasses.
According to reports from Bloomberg and the Wall Street Journal (WSJ), the Ray-Ban Meta smart glasses are co-developed by Meta and EssilorLuxottica. EssilorLuxottica CEO Francesco Milleri recently disclosed that the new product launched in October 2023 has already outsold the first-generation Ray-Ban Stories, which have been on the market for over two years.
Ray-Ban Meta smart glasses sales surpass previous generation
Sources indicate that Meta is interested in acquiring a 3-5% stake in EssilorLuxottica. A 5% stake would be worth approximately €4.5 billion (US$4.9 billion) based on the current valuation. However, the parties are still in negotiations, and there is no guarantee of reaching a final agreement.
The report states that Meta has submitted this investment proposal to US antitrust authorities and received permission to acquire up to a 5% stake. The US Federal Trade Commission (FTC) declined to comment on the matter.
Analysts believe that if Meta successfully acquires a stake in EssilorLuxottica, it will deepen their collaborative relationship and enhance product competitiveness, positively impacting Meta's metaverse-related businesses. Competitors in the Extended Reality (XR) device market include Snap's Spectacles Augmented Reality (AR) glasses and Apple's Vision Pro Mixed Reality (MR) headset.
Bloomberg Intelligence also noted that, unlike its previous acquisition of Oculus, which gave Meta control over the hardware platform, Meta is considering acquiring EssilorLuxottica shares to further invest in its AR and smart glasses technology. Smart glasses could become the interface device for the next generation of Artificial Intelligence (AI) and virtual assistants.
AR device shipments currently account for less than 10% of virtual reality (VR) device shipments. However, AR device growth is expected to significantly outpace VR devices in the coming years.
The new generation of Ray-Ban Meta glasses features upgraded processors, cameras, and sensors. More importantly, it incorporates MetaAI, an assistant function based on the Meta Llama model, greatly enhancing its functionality and practicality.
Furthermore, reports suggest that the third generation of Ray-Ban Meta glasses is expected to be released before the peak season at the end of 2025. This upcoming generation could potentially feature a micro-display, further advancing the technology.
