According to reports from the Financial Times and Wall Street Journal on Thursday, Facebook owner Meta Platforms (NASDAQ:META) is assessing a potential multibillion-euro investment in eyewear group EssilorLuxottica.
Citing people with knowledge of the matter, the WSJ said the social media platform is in talks to purchase around a 5% stake in the company as it strengthens its push to develop smart glasses.
However, it cautions that the talks are ongoing and may not result in a deal.
Based on EssilorLuxottica's most recent market value, a 5% stake could be worth about 4.5 billion euros, or just under $5 billion.
The publication notes that sales of the companies' Ray-Ban smart glasses, called Ray-Ban Meta, have surpassed expectations and the devices have become an important part of Meta's hardware strategy, letting users to take photos and listen to music with the frames of
their glasses.
Its sources said that by buying a stake in Paris-based EssilorLuxottica, the Facebook parent company is aiming to build on the momentum of the Ray-Ban Meta's success and create more devices together.
According to the WSJ, the upcoming Ray-Ban Meta glasses are anticipated to be available for purchase in time for the 2025 holiday-shopping season.
The new devices are expected to include a small screen display.
The success of a tech device expected to be worn on the face is greatly influenced by the appeal of Luxottica's Ray-Ban brand, according to the WSJ sources.
Furthermore, it is reported that Luxottica's ownership of prescription eyewear retailer LensCrafters plays a key role in selling the Ray-Ban Meta to users who need prescription lenses.
The two companies started collaborating several years ago to launch the first generation of Ray-Ban Stories smart glasses, which became available for purchase in 2021.
WSJ sources said that at the time, the two companies had agreed to develop two devices.