Meta Explores Multibillion-Euro Stake in Ray-Ban Maker EssilorLuxottica

Meta's Potential 5% Acquisition In Ray-Ban Maker Applauded By Jim Cramer: Wearable Tech Revolution Is A 'Big Deal' - Apple (NASDAQ:AAPL), Essilorluxottica (OTC:ESLOY)

Meta Platforms Inc. META is set to acquire a 5% stake in Essilorluxottica ESLOY, a move that has caught the attention of financial expert Jim Cramer. He believes this deal could be a game-changer for Meta's future in the wearable tech space. What Happened: Cramer, host of CNBC's "Mad Money," expressed his views on "Squawk Street" on Thursday about the future of Meta Platforms in the wearable tech industry. The company's stock saw a rise following the news of the potential investment in EssilorLuxottica. The deal with EssilorLuxottica, the manufacturer of Ray-Ban smart glasses, is seen as a significant development by Cramer. He highlighted the intense production at the company's Italian factory and the potential for "instant AI" use cases with the smart glasses. The investment in EssilorLuxottica, valued at approximately 4.5 billion euros ($5 billion), is expected to further strengthen the partnership between the two companies. The Ray-Ban Meta smart glasses, launched last year, have exceeded sales expectations, leading Meta to consider developing more devices in collaboration with EssilorLuxottica. See Also: Trump Says Taiwan Should Pay For Its Defense To US, But If China Invades Taipei, It Will Be 'Catastrophic For American Economy, Says Analyst: 'It's Dark And It's High Stakes' The third generation of Ray-Ban Meta glasses, anticipated to feature a small screen display, is slated for release during the 2025 holiday season. The popularity of the Ray-Ban brand is crucial for the success of wearable tech, and the partnership with EssilorLuxottica, which also owns LensCrafters, will facilitate the introduction of the Ray-Ban Meta to users requiring prescription lenses. Why It Matters: Meta's strategic investment in EssilorLuxottica comes at a crucial time. The wearable tech market is becoming increasingly competitive. Recently, Solos announced its new AirGo Vision smart glasses, powered by OpenAI's ChatGPT technology, which could pose a significant challenge to Meta's offerings. Additionally, Apple Inc. AAPL is reportedly developing its own AR smart glasses, although these may not hit the market until 2027. This gives Meta a potential head start in establishing its dominance in the smart glasses sector. Moreover, Meta has been enhancing the functionality of its Ray-Ban Meta smart glasses. As of May, users can now share directly to Instagram Stories, adding another layer of integration with Meta's social media platforms. Price Action: Meta Platforms Inc. closed at $475.85 on Thursday, marking an increase of 3.00%. In after-hours trading, the stock rose further 0.75%. Year to date, Meta's stock has appreciated by 37.41%, according to data from Benzinga Pro. Read Next: Chewy Founder, GameStop CEO Ryan Cohen Posts 'TRUMP' 665 Times On Elon Musk's X: Cryptic Message Has Internet Guessing Photo courtesy: Ray-Ban This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Meta in talks to buy 5% stake in Ray-Ban maker EssilorLuxottica, WSJ reports

The potential deal could give Meta further control over the roadmap for the smart glasses at a time when tech giants including Apple are investing millions to create cutting-edge gadgets based on augmented- and mixed-reality technologies. EssilorLuxottica's Paris-listed shares jumped 6% after the report, while Meta stock was up 2.3% just after the opening bell. The eyewear company was formed in 2018 through a merger of France's Essilor and Italy's Luxottica. Delfin, the holding company owned by the family of Luxottica's late founder Leonardo Del Vecchio, is its largest investor, with a stake of nearly 33%. The Ray-Ban Meta smart glasses, first launched in 2021, have been an important part of Meta's consumer products portfolio. EssilorLuxottica CEO Francesco Milleri said earlier this week that the new generation of Ray-Ban Meta smart glasses, launched last October, have sold more in a few months than the old ones did in two years. Analysts have been positive about the latest generation of the glasses, which include a Meta AI assistant and are capable of livestreaming broadcasts of what a user is seeing directly to Facebook and Instagram. "We believe Meta's Ray-Ban Smart Glasses may only be a generation or two away from finding product market fit," Bernstein analysts said earlier this month. A third-generation of the Ray-Ban Meta glasses is expected to be ready by the 2025 holiday-shopping season, according to the WSJ report. EssilorLuxottica and Meta did not respond to Reuters requests for comment. (Reporting by Yuvraj Malik and Aditya Soni in Bengaluru; Editing by Pooja Desai and Shounak Dasgupta)

Meta In Talks for Stake in Ray-Ban Maker in Smart Glasses Push

(Bloomberg) -- Meta Platforms Inc. is in talks to take a minority stake in the maker of Ray-Ban sunglasses, as the Facebook owner intensifies its push to develop smart glasses. Meta, which has collaborated with EssilorLuxottica SA on Ray Ban-Meta smart eyewear, is considering a stake of as much as 5% of the luxury eyewear group, which would be valued at about €4.5 billion ($4.9 billion) at current prices, according to people familiar with the discussions, who asked not to be identified because the information is not public. There is no guarantee that any investment will take place, they said. A spokesperson for Meta didn't immediately respond to a request for comment. A spokesperson for EssilorLuxottica declined to comment. The Financial Times reported the talks earlier. By taking a stake in EssilorLuxottica, the social media giant would seek to strengthen its partnership with the world's biggest eyewear company. Meta, along with other major technology companies, is exploring using virtual and augmented reality to keep users loyal and engaged. Snap Inc. has been experimenting with mixed-reality spectacles for years, while Apple Inc. released the Vision Pro headset earlier this year. As yet, users have not adopted these technologies en masse. EssilorLuxottica shares rose 4.6% to €198.65 at 3:15 p.m. in Paris. Meta has invested heavily into the metaverse -- a future version of the internet made up of immersive worlds accessible via headsets -- which Chief Executive Officer Mark Zuckerberg has hailed as the next major computing revolution after mobile phones. The company changed its name from Facebook to Meta years ago to underscore the dedication to the concept. What Bloomberg Intelligence Says: Meta is likely doubling down on its AR and smart-glasses bet with its new new stake in EssilorLuxottica, given it doesn't own the hardware platform as is the case with Oculus VR. We believe AR units, about 10-15x smaller than VR in terms of units shipped, could grow at a much faster rate than VR given the potential to have smart glasses as an inference device for gen-AI and virtual-assistant functionality. -- Mandeep Singh and Nishant Chintala, Bloomberg Intelligence Senior Tech Analysts Meta unveiled its first Ray-Ban smart glasses in partnership with EssilorLuxottica, in 2021. Those glasses were set on the Wayfarer frame to let users take photos and videos, listen to music and answer calls. Newer glasses incorporate MetaAI, an AI assistant based on its Llama artificial intelligence model. EssilorLuxottica on Wednesday announced an agreement to buy streetwear label Supreme from VF Corp. for $1.5 billion in cash, adding another lifestyle brand to a stable that also includes Oakley sunglasses. --With assistance from Shona Ghosh, Daniel Zuidijk and Antonio Vanuzzo.

Meta explores stake in Ray-Ban maker EssilorLuxottica

Arash Massoudi in London, Hannah Murphy in San Francisco and Silvia Sciorilli Borrelli in Milan Facebook owner Meta has explored a multibillion-euro investment in eyewear group EssilorLuxottica, as the social media platform intensifies its push to develop smart glasses. The Silicon Valley company has considered taking a small stake in the €87bn Franco-Italian group, according to multiple people with knowledge of its thinking. The move comes as Meta has been holding talks with EssilorLuxottica to deepen their existing collaboration following the successful launch of a revamped version of their "Ray Ban-Meta" smart glasses last year, some of the people said. Meta's chief Mark Zuckerberg has spent billions of dollars in recent years to enter the wearable technology market, such as by creating virtual reality headsets. Meanwhile, Paris-listed EssilorLuxottica has also pushed for deals that can attract a new generation of shoppers. There is no guarantee that any investment will take place, said the people close to the talks. Meta has been working with Morgan Stanley on the matter, according to one of the people. Meta, EssilorLuxottica and Morgan Stanley declined to comment. The first Ray-Ban Meta glasses were launched in 2021, but the newest generation launched in October last year sold more in a few months than the previous ones did in two years, EssilorLuxottica's chief executive Francesco Milleri said at an event earlier this week. The latest version of the glasses allows users to livestream what they see directly on to Facebook and Instagram. In the US, the glasses are integrated with Meta's artificial intelligence assistant, giving owners the ability to ask the glasses for more information about what is in front of them. This week, EssilorLuxottica agreed to buy US streetwear label Supreme for $1.5bn. People close to the deal said the eyewear group aimed to launch a new version of Supreme smart sunglasses in partnership with Meta, to better target young consumers. Meta and rival Apple are vying to build unintrusive augmented reality glasses that could one day replace the smartphone as the next-generation computing device, but the technology is nascent and consumers have been reluctant to wear cumbersome devices on their face. Zuckerberg said on an April earnings call that the company's outlook for smart glasses had "improved quite a bit" and that it was one of the "bigger areas" that the company was investing into in its AR and virtual reality department, Reality Labs. Previously, he had said glasses would need "full holographic displays to be a large market", but that the success of the Meta Ray-Bans had proven otherwise. "If we want everyone to be able to use wearable AI, I think eyewear is a bit different from phones or watches in that people are going to want very different designs," he added. "So I think our approach of partnering with leading eyewear brands will help us serve more of the market." EssilorLuxottica, which was created seven years ago through a complex €50bn merger of late Italian billionaire Leonardo Del Vecchio's eyewear group Luxottica and French lens manufacturer Essilor, has steadily grown larger to become the world's largest eyewear manufacturer. Over the past few years, acquisitions of technology and engineering companies have been at the core of its strategy. In 2022 the group acquired Israeli hearing technology start-up Nuance Hearing to develop glasses fitted with its acoustic beamforming technology. This week, EssilorLuxottica also took an 80 per cent stake in Heidelberg Engineering, a German company specialising in eye surgery technologies, as part of its push into medtech.

Report: Meta Seeks Stake in 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.

Meta might buy a stake in Ray-Bans to go big on smart glasses

Meta is reportedly considering a multibillion-euro investment in Ray-Ban maker EssilorLuxottica, amid the smart glasses partnership between the companies. The Financial Times reported, citing unnamed sources familiar with the matter, reports that the Facebook parent company is exploring a small stake in the Franco-Italian eyewear group. Meta is working with Morgan Stanley on the possibility. Meanwhile, Meta and EssilorLuxottica are currently discussing deepening their "Ray-Ban Meta" smart glasses partnership, The FT reports. The first-generation of the smart glasses, Ray-Ban Stories, was released in 2021, and could take photos and record video. In October, the latest generation of the smart glasses were released, which EssilorLuxottica CEO Francesco Milleri reportedly said sold more in a few months than older generations did in two years. In March, Meta announced it was adding its Meta AI feature to the smart glasses, which allows users to ask for real-time answers and recommendations based on their surroundings. Some examples include asking the smart glasses to identify objects, translate languages, and make suggestions based off photos taken with the glasses. Adding artificial intelligence features to its smart glasses is one of the ways Meta is positioning itself as a contender in the AI race. Meanwhile, EssilorLuxottica has agreed to acquire streetwear brand Supreme in a $1.5 billion cash deal that is expected to close at the end of the year. It is the eyewear group's first apparel-centric brand in its portfolio. Milleri and EssilorLuxottica deputy chief Paul du Saillant said the deal "perfectly aligns" with the group's "innovation and development journey," and offers it a "direct connection to new audiences."

Meta to take a stake in EssilorLuxottica?

After plummeting 4.5% yesterday on the announcement of the purchase of the Supreme brand from V.F. Corp, EssilorLuxottica suddenly shot up 6% in the early afternoon. The Financial Times has just revealed that Meta Platforms is ready to invest several billion in the Ray-Ban and Oakley owner. Meta is considering a multi-billion euro investment in EssilorLuxottica, its partner in the world of smart glasses. "The Silicon Valley company has considered taking a small stake in the Franco-Italian group," according to information from the FT. Meta has been working with Morgan Stanley on this investment, but no one was willing to comment. Marketing launched less than a year ago Mark Zuckerberg believes that the prospects for this market have improved significantly. "If we want everyone to be able to use wearable AI, I think glasses are a bit different from phones or watches, because people will want very different designs," the Meta founder said in April, quoted by the FT. The Ray-Ban Meta was launched in September 2023. This new generation of "smart" glasses is "equipped with a live streaming function and integrated Meta artificial intelligence, a 12 MP wide-angle camera, discrete speakers with open-ear speakers for an all-encompassing audio experience, and five built-in microphones that make it easy to switch between music and calls, while allowing eyeglass wearers to stay in tune with the world around them."

Meta Said to Be in Talks for Minority Stake in Eyewear Maker

Mike Isaac reports on Meta and has covered the company's hardware division since it was acquired in 2014. Meta is in discussions to take a minority stake in EssilorLuxottica, the European eyewear conglomerate, two people with knowledge of the talks said, in a move that could further tie together two companies that have worked on a line of augmented reality glasses. Meta could take a stake of as much as 5 percent of EssilorLuxottica, which makes eyewear brands such as Ray-Ban and Oakley, the people said. The eyewear company, which is based in Charenton-le-Pont, France, and trades on the Paris stock exchange, is currently valued at €88 billion, or $96 billion. The talks are ongoing and could fall apart, said the people, who spoke on the condition of anonymity because the discussions were confidential. A Meta representative declined to comment. EssilorLuxottica didn't immediately respond to a request for comment. The Financial Times reported earlier on the discussions. An investment from Meta, which owns Facebook, Instagram and WhatsApp, would signal its continued commitment to building what is known as the metaverse, an immersive digital universe. Mark Zuckerberg, the chief executive of Meta, has championed the company's shift to metaverse-related products, authorizing tens of billions of dollars of spending on related hardware such as virtual reality headsets and smart, wearable devices. In 2021, Meta partnered with EssilorLuxottica to produce a line of Ray-Ban smart sunglasses, called Ray-Ban Stories. The glasses have cameras built into the frames and they can capture photo and video that can be quickly uploaded to Meta's apps. Last year, Meta released an updated line of the glasses and changed their name to Ray-Ban Meta smart glasses. Some of the styles quickly sold out. Mr. Zuckerberg and Andrew Bosworth, Meta's chief technology officer who runs Reality Labs, which is building hardware for the metaverse, have both emphasized the importance of the smart glasses to the company's metaverse strategy. Meta's hardware division has also become central to its work on artificial intelligence, which has grown in importance as competitors like Google, Microsoft and others also ramp up A.I. across their products. In April, Meta integrated its A.I. smart assistant into its line of Ray-Bans, allowing people to ask it questions, rattle off recipes or identify objects or landmarks in front of them. One place where Meta's hardware division has yet to succeed: becoming profitable. Reality Labs lost $3.8 billion in the first quarter of this year. Mr. Zuckerberg shows no signs of slowing down his spending on the technology.

What's Going On With Meta Platforms Shares On Thursday? - Meta Platforms (NASDAQ:META), Essilorluxottica (OTC:ESLOY)

Meta to acquire 5% stake in EssilorLuxottica.Ray-Ban Meta glasses sales exceed expectations. Meta Platforms Inc META is trading higher Thursday after the Wall Street Journal reported that it plans to acquire a 5% stake in eyewear company EssilorLuxottica ESLOY. What Happened: EssilorLuxottica, Meta's partner for the Ray-Ban smart glasses, with an investment value of about 4.5 billion euros ($5 billion), based on EssilorLuxottica's market value. The Ray-Ban Meta smart glasses, introduced last year, can take calls, play some music, help do live streams, and even search for things that you look at. Sales of the latest Ray-Ban Meta smart glasses have surpassed expectations. Meta aims to leverage this momentum to develop more devices in collaboration with EssilorLuxottica. In June, CEO Mark Zuckerberg teased the company's upcoming "full holographic" glasses, an internal project dubbed Orion. Also Read: Apple Vision Pro Sales Fall Short, iPhone 16 Camera Upgrades And More: This Week In Appleverse The third generation of Ray-Ban Meta glasses, expected to feature a small screen display, is anticipated for the 2025 holiday season. The Ray-Ban brand's popularity is important for the success of wearable tech. Additionally, EssilorLuxottica also owns LensCrafters, so having a stake helps in introducing the Ray-Ban Meta to users requiring prescription lenses. The partnership between Meta and EssilorLuxottica began with the first-generation Ray-Ban Stories in 2021. Although the initial device struggled, the second-generation Ray-Ban Meta glasses, released in September, have performed significantly better, featuring improved cameras and AI technology. Zuckerberg noted in April that the market for such devices is developing faster than expected. EssilorLuxottica recently announced a $1.5 billion deal for the Supreme brand and acquired an 80% stake in Germany's Heidelberg Engineering, further expanding its portfolio. Meta stock has gained more than 50% in the last 12 months. Investors can gain exposure to the stock via Vanguard Communication Services ETF VOX and Communication Services Select Sector SPDR Fund XLC Price Action: META shares are trading higher by 1.31% at $468.02 at last check Thursday. Read Next: Chip Maker Intel Aims For $1B In Software Revenue By 2027 Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

EssilorLuxottica : Meta to take a stake in EssilorLuxottica?

After plummeting 4.5% yesterday on the announcement of the purchase of the Supreme brand from V.F. Corp, EssilorLuxottica suddenly shot up 6% in the early afternoon. The Financial Times has just revealed that Meta Platforms is ready to invest several billion in the Ray-Ban and Oakley owner. Meta is considering a multi-billion euro investment in EssilorLuxottica, its partner in the world of smart glasses. "The Silicon Valley company has considered taking a small stake in the Franco-Italian group," according to information from the FT. Meta has been working with Morgan Stanley on this investment, but no one was willing to comment. Marketing launched less than a year ago Mark Zuckerberg believes that the prospects for this market have improved significantly. "If we want everyone to be able to use wearable AI, I think glasses are a bit different from phones or watches, because people will want very different designs," the Meta founder said in April, quoted by the FT. The Ray-Ban Meta was launched in September 2023. This new generation of "smart" glasses is "equipped with a live streaming function and integrated Meta artificial intelligence, a 12 MP wide-angle camera, discrete speakers with open-ear speakers for an all-encompassing audio experience, and five built-in microphones that make it easy to switch between music and calls, while allowing eyeglass wearers to stay in tune with the world around them."