Facebook, Threads, Instagram and WhatsApp parent Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) is in discussions with EssilorLuxottica to acquire a 5% stake in the Ray-Bans owner.
If a Bloomberg report citing “people familiar with the matter” proves accurate, it would amount to a nearly $5 billion stake in the Franco-Italian eyewear corporation.
Mark Zuckerberg’s Meta has an existing relationship with EssilorLuxottica, having launched a range of Ray-Ban Meta smart glasses in September 2021.
Meta is likely hoping to enhance this collaboration with more sophisticated augmented reality and metaverse applications.
EssilorLuxottica, as the owner of the collaboration’s hardware, has yet to publish specific Ray-Ban Meta sales figures.
An annual report published in February opaquely stated: “On the frame side, the performance of the luxury portfolio remained solid, while Ray-Ban accelerated following the successful launch of the upgraded Ray-Ban Meta smart glasses and the selective price increases implemented at mid-year.”
It is also unclear what Meta receives in revenues from Ray-Ban Meta sales.
The product has nonetheless failed to go mainstream yet as it struggles to find a purpose in the increasingly sophisticated wearable tech industry.
But given Meta’s $30 billion and counting investment into its metaverse ambitions, Zuckerberg has shown unbudging willingness to allocate large sums of capital expenditure to make his metaverse vision a reality.
Ray-Ban Metas already come with AR features, AI voice assistance, integrated cameras, audio capabilities and touch controls.