Meta Platforms Inc. acquired a minority stake in EssilorLuxottica SA, the world’s largest eyewear manufacturer. Meta bought just under 3% of the Ray-Ban maker, a stake worth around €3 billion ($3.5 billion) at market prices, according to sources familiar with the matter.
Meta is considering further investment that could build the stake to around 5% over time, the sources added, though those plans could change. EssilorLuxottica and Meta declined to comment. Shares of EssilorLuxottica surged the most in three months in Paris following the news of the investment.
Analysts at Bernstein view the growing ties with Meta as a vote of confidence in the eyewear maker and the potential of the smart glasses market. The two companies have collaborated for several years to develop AI-powered smart glasses. Meta currently sells a pair of Ray-Ban glasses, first debuted in 2021, that feature built-in cameras and an AI assistant providing functionalities such as image-captioning or real-time stock prices.
Last month, Meta launched Oakley-branded glasses in partnership with EssilorLuxottica. EssilorLuxottica’s chief executive officer Francesco Milleri had indicated last year that Meta was interested in taking a stake in the company, but the plan hadn’t materialized until now.
Meta’s investment in smart glasses
Following the investment, EssilorLuxottica’s market value rose to €117.3 billion, while Meta saw a smaller increase in premarket US trading. The deal aligns with Meta CEO Mark Zuckerberg’s commitment to AI, a top priority and major expense for the company. According to Zuckerberg, smart glasses are a critical part of Meta’s strategy to develop its own hardware and control distribution, moving away from reliance on smartphones created by other manufacturers.
The arrangement with EssilorLuxottica grants Meta access to detailed manufacturing knowledge and global distribution networks, fundamental for turning its smart glasses into mass-market products. For EssilorLuxottica, the deal offers a foothold in the tech world, beneficial if Meta’s futuristic investments pay off. Meta is betting on the idea that people will one day work and play while wearing headsets or glasses.
Non-AR smart glasses display information but do not provide a full alternative-reality experience. Apple Inc. has also pivoted to non-AR smart glasses, as full AR is considered impractical in the near term.
The market for smart glasses is predicted to grow to $8.26 billion by 2030 from $1.93 billion in 2024, according to GrandView Research. Analysts at Jefferies suggest that smart glasses may soon become mainstream, pointing out Google’s recent collaboration with France’s Kering Eyewear and China’s Xiaomi’s announcement of its entry into the market.
Kirstie a technology news reporter at DevX. She reports on emerging technologies and startups waiting to skyrocket.
