Source-tribune.com.pk
Potential Multibillion-Euro Stake
Meta, the parent company of Facebook, is considering a significant investment in EssilorLuxottica, a leading eyewear group valued at €87 billion. Sources familiar with the matter revealed that Meta has been in discussions about acquiring a small stake in the Franco-Italian company. This potential move aims to strengthen Meta’s presence in the smart glasses market, building on the success of their “Ray-Ban Meta” collaboration.
Strengthening Collaborations
Meta’s CEO, Mark Zuckerberg, has been investing heavily in wearable technology, including virtual reality headsets. In parallel, EssilorLuxottica has been seeking deals to attract a younger consumer base. Although there is no certainty that an investment will materialize, Meta has enlisted Morgan Stanley for advisory services. The news of potential talks caused EssilorLuxottica’s share price to surge by nearly 5%.
Advancements in Smart Glasses
The original Ray-Ban Meta glasses launched in 2021, but the latest version, released in October last year, outperformed its predecessor significantly in sales within a few months. These glasses offer features like live streaming to Facebook and Instagram and integration with Meta’s AI assistant in the US, enhancing user interaction.
This week, EssilorLuxottica announced the acquisition of US streetwear brand Supreme for $1.5 billion. Sources indicated that the eyewear group plans to collaborate with Meta on a new line of Supreme smart sunglasses, targeting the younger demographic more effectively.
Worldwide Market Leader in Eyewear, Essilorluxottica Company, has 150 Top Brands & Buys Supreme!
Future of Wearable Technology
Meta and Apple are in a race to develop augmented reality glasses that could potentially replace smartphones. Despite the technology being in its early stages and consumer reluctance to adopt bulky devices, Zuckerberg remains optimistic. He highlighted in an April earnings call that the outlook for smart glasses has improved and emphasized the importance of partnering with established eyewear brands to cater to diverse design preferences.
Essilor Luxottica’s Strategic Acquisitions
EssilorLuxottica, formed through a €50 billion merger seven years ago, has become the world’s largest eyewear manufacturer. The company’s growth strategy includes acquiring technology and engineering firms. In 2022, it acquired Israeli start-up Nuance Hearing to integrate acoustic beamforming technology into its glasses. This week, it also secured an 80% stake in Heidelberg Engineering, a German company specializing in eye surgery technologies, marking a significant step into the medtech sector.
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