[SAN FRANCISCO] Metaplatform has purchased a minority stake in Essilorluxottica, the world's largest eyewear manufacturer. This is a deal that will increase the financial commitment of the US giant to the fast-growing smart eyeglass industry, according to sources familiar with the issue.
Facebook's parent meta has acquired just under 3% of Ray-Ban maker Essilorluxottica, a stake worth around 3 billion euros (SGD4.5 billion) at its current market price. The source added that Meta, based in Menlo Park, California, is considering further investments that could build a stock at around 5% over time, but those plans could still change.
Essilorluxottica's US deposit receipt rose to USD 148 from 6.9%, the largest intraday jump since April 9th. Representatives of Meta and Essilorluxottica declined to comment.
Meta's investment in Eyewear Giant has deepened the relationship between the two companies that have partnered over the past few years to develop smart glasses powered by artificial intelligence (AI). META is currently selling Ray-Ban Glass, which first debuted in 2021, and incorporates cameras and AI assistants.
Last month, they launched individual Oaklevel glasses along with Essilorluxottica. Francesco Milleri, CEO of Essilorluxottica, said last year that Meta is interested in taking stake in the company, but that plan has not been realized so far.
The deal coincides with Meta CEO Mark Zuckerberg's commitment to AI. This has become a top priority and a major expense for the company. Smart glasses are an important part of that plan.
Zuckerberg said Meta historically had to provide apps and services via smartphones, but it had to provide apps and services via smartphones created by competitors, while Meta offers the opportunity to build its own hardware and control its own distribution. This arrangement gives the meta the advantage of having more detailed manufacturing knowledge and a global distribution network. This is based on transforming smart glasses into mass market products.
For Essilorluxottica, this transaction offers a deeper presence in the world of technology. This is useful when Meta's futuristic bets pay off. Meta also bets on the idea that people will work and play while they're wearing their headsets and glasses one day.
Shares of competing eyeglass maker Warby Parker rose 4.3% in a Bloomberg report. Bloomberg
