Meta looking into investing in EssilorLuxottica, the company that makes Ray-Bans

The Financial Times and Wall Street Journal reported on Thursday that Meta is evaluating a possible multibillion-euro investment in the company EssilorLuxottica.

The Wall Street Journal reported, citing sources with knowledge of the situation, that the social networking giant is in discussions to acquire around 5% of the business as it intensifies its efforts to create smart spectacles.

It does, however, warn that negotiations are still underway and that an agreement might not be reached.

A 5% share in EssilorLuxottica may be valued at around 4.5 billion euros, little less than $5 billion, based on the company's most recent market valuation.

According to the article, sales of the firms' Ray-Ban smart glasses, known as Ray-Ban Meta, have exceeded projections and the gadgets have grown to be a significant component of Meta's hardware strategy. Users may use the glasses' frames to take pictures and listen to music.

According to its sources, Meta hopes to expand on the success of Ray-Ban Meta by acquiring a share in Paris-based EssilorLuxottica and jointly developing other products.

The next Ray-Ban Meta spectacles should be on sale in time for the 2025 holiday shopping season, according to the WSJ.

It's anticipated that the new devices will have tiny screens.

The WSJ sources claim that the popularity of Luxottica's Ray-Ban brand has a significant impact on the success of the tech product that is meant to be worn on the face.

(Sources: investing.com, ft.com, wsj.com)