Meta eyes 5% stake in Ray-Ban parent

Facebook parent Meta is negotiating a 3%–5% stake in EssilorLuxottica, the company behind Ray-Ban, in a deal worth around $4.73 billion, reports the Wall Street Journal.

The investment would deepen Meta’s partnership with EssilorLuxottica, which already produces Ray-Ban smart glasses in collaboration with the tech giant.

Meta is looking to expand its wearable technology as it aims to leverage the success of next-generation Ray-Ban Meta Smart Glasses launched in 2023 (that saw way better sales than its predecessor) to co-develop future devices. A third-generation Ray-Ban Meta glasses is expected by the 2025 holiday season, featuring a small display.

The Ray-Ban Meta Smart glasses are integral to the tech company’s strategy for the Metaverse, a virtual space where users interact in a 3-D internet environment.

EssilorLuxottica’s market value currently stands around $100 billion, making a 5% stake a notable yet manageable investment for Meta, whose market capitalization is approximately $1.2 trillion. 

Meanwhile, EssilorLuxottica has announced major deals, including acquiring Supreme and Germany’s Heidelberg Engineering, expanding its influence in the eyewear industry.

Following the news, shares of EssilorLuxottica rose 2.3%, while Meta’s stock increased by 1.1%. This potential investment follows the tech giant’s previous stake in Reliance Industries’ Jio Platforms in 2019.