Meta just invested $3.5B in Ray‑Ban's parent company: Here's why
What's the story
Meta Platforms, the parent company of Facebook, has acquired a minority stake of around 3% in EssilorLuxottica, the world's largest eyewear manufacturer. The deal is said to be worth around €3 billion (approximately $3.5 billion) at current market prices. The investment marks Meta's growing interest in the smart glasses market and its commitment to artificial intelligence (AI) technology.
Collaborative efforts
Partnership has been working on AI-powered smart glasses
The investment strengthens the existing relationship between Meta and EssilorLuxottica, who have been working together for years to create AI-powered smart glasses. Meta currently sells a pair of Ray-Ban glasses with built-in cameras and an AI assistant. Last month, it launched separate Oakley-branded glasses with EssilorLuxottica as part of their ongoing collaboration in the wearable tech space.
Strategic alignment
Deal aligns with Zuckerberg's focus on AI
The deal fits perfectly with Meta CEO Mark Zuckerberg's focus on AI, which has become a top priority and major expense for the company. Smart glasses are a key part of that plan. The partnership gives Meta access to EssilorLuxottica's manufacturing expertize and distribution channels, essential for making its smart glasses mainstream products.
Tech expansion
For EssilorLuxottica, deal means stronger foothold in tech industry
For EssilorLuxottica, the deal means a stronger foothold in the tech industry. The company hopes to expand its partnership with Meta to other brands and has plans to increase production capacity for smart glasses. This move comes as part of a larger trend of growing consumer interest in AI-powered wearable devices.