Report: Meta Seeks Stake in Smart Glasses Partner EssilorLuxottica

Meta is reportedly looking to buy a stake in its smart glasses partner EssilorLuxottica.

The tech company is in talks to acquire a 5% stake in the eyewear maker, which owns the Ray-Ban brand, The Wall Street Journal (WSJ) reported Thursday (July 18), citing unnamed sources.

A 5% stake could be valued at about 4.5 billion euros ($4.9 billion), according to the report.

The talks may not result in a deal, the report said.

Neither Meta nor EssilorLuxottica immediately replied to PYMNTS’ request for comment.

The two companies partner on Ray-Ban Meta smart glasses, which have seen higher-than-expected sales and are an important part of Meta’s hardware business, according to the report.

By acquiring a stake in EssilorLuxottica, Meta could build more devices with the company, maintain ties with the Ray-Ban brand that is popular with buyers of smart glasses, and stay connected with the EssilorLuxottica-owned retailer LensCrafters, which helps sell the smart glasses to customers who need prescription lenses, the report said.

Meta and EssilorLuxottica have been partners since the time of the Ray-Ban Stories smart glasses, which went on sale in 2021, per the report.

While that device struggled to catch on with consumers, the second-generation Ray-Ban Meta smart glasses have done significantly better since their introduction in September 2023, according to the report.

When unveiling the current generation of smart glasses developed in partnership with EssilorLuxottica, Meta said they include improved audio and cameras, a lighter and more comfortable design, and a choice of more than 150 different frame and lens combinations.

The smart glasses also enable users to livestream from the glasses to Facebook or Instagram, hands-free, and engage with Meta’s conversational assistant, Meta AI, by using their voice, the tech company said in September 2023.

The launch of those second-generation smart glasses came after the Ray-Ban Stories that were introduced in 2021 failed to catch fire with consumers and were reportedly rarely used by those who bought them.

Users of the first-generation smart glasses had trouble with connectivity, audio, voice commands and battery life, leading Meta to seek better user engagement and retention with the second generation.