New Delhi. Facebook’s parent company Meta may soon buy a stake in eyewear maker EssilorLuxottica. EssilorLuxottica manufactures sunglasses under the popular brand ‘Ray-Ban’. With this deal, Meta is preparing to enter the world of smart glasses.
Essilor Chief Executive Officer Francesco Milleri commented on Meta’s interest in the stock during a call with analysts late Thursday, following weeks of speculation about Facebook boss Mark Zuckerberg’s plans. However, a Meta spokesman declined to comment.
Essilor shares rose
Following the announcement, Essilor Luxottica shares rose 8.1% in Paris on Friday, the biggest rise in two years.
The two companies have already been working together for several years, with the partnership launching the first Ray-Ban-Meta smartglasses in 2021. A deal with EssilorLuxottica will mark another step by Meta into the virtual and augmented reality market for smartglasses, while boosting the eye-wear maker’s visibility and access to new markets and fresh capital.
“We are proud that a company that knows us very well, after many years of partnership, is confident that our company can grow and do much better in the future,” Milleri said.
The company can buy 5% stake
Bloomberg reported earlier this month that Facebook was considering taking up to a 5% stake in EssilorLuxottica. Milleri said on Thursday that if the US firm decides to invest, it would have to buy shares from the market. He did not elaborate on the size of the stake Meta would buy or the timing of the purchase.
The world’s largest eyewear maker and retailer reported adjusted net income of €1.75 billion ($1.9 billion) in the first half, up 10.6% from the same period last year. Revenue was €13.3 billion, in line with analysts’ forecasts.
Tags: Business news, Facebook making money
FIRST PUBLISHED : July 28, 2024, 14:10 IST